Tax saving investments in India are an integral part of financial planning for individuals and businesses alike. Section 80C, 80D, 80CCD, 24(b), 80TTA/ 80TTB, and u/s 10 of the Income Tax Act, 1961 are some of the significant tax saving sections. By strategically allocating funds to these investments, you not only reduce your tax liabilities but also build wealth over time.
Here are some examples of tax-saving instruments according to the old tax regime.
- PF Employee and Employer contribution from Salary
- Public Provident Fund
- National Pension Scheme
- Premium Paid for Life Insurance policy
- National Savings Certificate
- Equity Linked Savings Scheme
- Home loan’s principal amount
- Fixed deposit for five years
- Sukanya Samariddhi account
- Children’s tuition fees
According to the Income Tax Act 80C, these are the best tax-saving investments.
You can cliam benefit under OLD tax regime if;
- You had taken home loan and your principal repayment is 1.5 lacs and the Interest payment u/s 24(b) is 2 lacs
- You had purachsed electric vechile and the interest payment is 1.5lac
- You have mediclaim policy of your family and parents and the premium paid is 55k
- If your staying in rent house property
- You have LTA, in which you can cliam benefit for you and your family accompanied travel.
If you only have 80C as tax saving part, then better to opt for New Tax Regime
When the financial year near's to end, every employee whose salary falls under the income tax bracket will have to submit investment proof with his employer. Most employees are unclear what proof or documents to submit with his employer to save taxes. To understand more in detail about the various income tax exemption and deduction, click here ...!
When should the employee submit his tax saving proofs to his employer?
Companies usually ask employees to submit the proof in the month of January or February so that employer will get enough time to verify and calculate the employee's tax accurately.
Those employees who resign from services in mid of the financial year should ensure to submit tax-saving proof to their employer at the time of leaving the job. By following this practice excess deduction of the income tax from the full and final settlement is avoided.
Employees who had already invested in the various tax-saving schemes, like LIC, PPF, ULIP, Pension fund, Housing Loan, ELSS, Mediclaim Insurance, etc would prefer to continue with the 'Old Tax Regime'.
To know more in detailed which income tax regime is suitable for you, then prefer PayHR Income Tax Calculator which will show comparsion of both tax regime. Just enter annual earning along with various tax saving investment planned or available with you and compare Income Tax amount as per both regime.
