How to reduce my Income tax amount

Dear Sir,

Hope you are doing well !!

Broadly/Practically, there are following Income tax sections under which you can claim the tax exemptions and save the taxes - 

80C-Section 80C comprises of various investments and expenses that are eligible for tax deductions. A taxpayer can claim maximum tax deductions of Rs 1.5 lakh for a particular financial year (FY) from his/her taxable income through investments made by him/her under section 80C of the Income Tax Act, 1961.

 1. NPS

2. PPF

3. LIC

4. ELSS

5. Term deposits

etc.

It is advisable to claim maximum tax deductions of Rs 1.5 lakh by investment specified u/s 80C. 

80CCD-To encourage the investors to invest for retirement in Nation Pension Scheme, the government allowed addition tax deduction of Rs 50,000 under section 80CCDD.

It is over and above Rs. 1.5 lakh limit.

80D-Deduction for the premium paid for Medical Insurance up to Rs. 50000 subject to conditions.

80G-The various donations specified in u/s 80G are eligible for deduction up to either 100% or 50% with or without restriction as provided in section 80G.

Thanks & Regards,

Payal Chhajed

After the closing of the financial year, for salaried persons there is no way to save tax. If you are living in rented house then you can claim HRA exemption. Standard deduction is Rs.40,000. 

If you planning for FY 2019-20 you will get standard deduction of 50,000 from salary.

You have mostly covered entire 80C deduction of 1.5 lakh and since you own your own house you only have one deduction left which can benefit you as an investment i.e. invest 50,000 in National Pension scheme and secondly you can avail medical premium for your family.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Hi,

We can't suggest anything concrete based on the above limitation information. We will have to see what other allowances are available as per your company policy.

You can certainly opt for NPS which can give you additional benefit of 50000 and 10% of basic salary.

Hello,

For F.Y. 2018-19, there is not much you can do now to save tax.

From the current year, you can invest in NPS to get an additional deduction up to Rs. 50,000. The standard deduction would increase to Rs. 50,000.

I hope this answer satisfies your requirement.

Regards,

CA Hunny Badlani