Welcome to SmartCA Blog +91 93808-02000 How to Save Tax in India
How To Save Tax in India? This article will explain the benefits of saving tax in India. There are several ways to reduce your taxes. The first step is to determine your income and find out how much you are actually paying. Once you have the amount, you need to calculate your deductions. This will help you figure out how much you can save in taxes. After figuring your deductions, you can choose how to invest the money.
One of the most popular ways to save tax in India is to buy a house. A home loan will allow you to claim a deduction for the principal amount of the loan that you pay in the current year. You can claim a maximum deduction of Rs. 1,50,000 for first-time home buyers, and up to Rs. 2 million for second-home loan borrowers. You must be aware that your interest earned from your savings will be turned into tax liability the following year.
You can also save tax by filing receipts for medical bills and house rent allowances. You can even save on income tax by claiming the expenses from your job. Many employers allow you to restructure your salary so that you don't have to pay the same amount of tax. Remember, the government is trying to make life easier for people in India and has a number of measures in place to help them save money while paying their taxes.
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