• About Us
  • Our Partners
  • Become an Advisor
  • NRI
  • QROPS
  • Careers
  • Alumni Portal
  • Public Disclosures
Select a language English
  • Pay Premium
  • COVID-19
    Assistance
    Covid-19 Crisis
  • Our
    Products
    • Protection Plans
    • Savings & Investments
    • Retirement & Pension
    • Group Business
    • QROPS
    Covid-19 Crisis
  • Our
    Funds
    • Fund Fact Sheet
    • Market Review
    • Check NAV
    • Market Highlights
    • Annual Fund Review 2019-20
    • Covid-19 Crisis
  • Knowledge
    Center
    • Blogs and Articles
      Term Insurance early bird offer

      With Term Insurance - It pays to be an early bird

      View All

    • Video library
      keep your family secured

      60 seconds is all it takes to keep your family secured!

      View All

    • FAQ

      What is the claims process at Exide Life Insurance?

      View All

  • Planning
    Tools
    • Calculate How Much
      Life Cover You Need
    • Risk Analyser
      Life Insurance
    • Child Education Planner
      Number
    • Know Your Retirement
      Number
    • Investment
      Calculator
  • Customer
    Service
    • Premium Payment Options
    • Self Service
    • Instant Sign up for Direct Debit
    • All Claims
    • Download Center
    • Term Insurance early bird offer

      Track your Application

    • Term Insurance early bird offer

      Track your
      Claim

    • Track your Service Request

Eng
Pay Premium
  • Our Products
  • Our Funds
  • Knowledge Center
  • Planning Tools
  • Customer Service
  • About Us
  • Our Partners
  • Become An Advisor
  • NRI
  • QROPS
  • Careers
  • Alumni Portal
  • Public Disclosures
  • Share via:
    • Home/
    • Our Funds /
    • Knowledge Center/
    • Blogs and Articles/
    • 5 Ways to save income tax
  • Categories:
  • Term Plan
  • Health Plan
  • Savings and Investments
  • Retirement
  • Tax Planning
  • Services
  • All

5 Ways to Save Income Tax

Tax Planning
Likes
Shares
    • Know the available tax savings options and plan to use it to your advantage
    • Tax savings is possible under various sections of the income tax act, which one should know and exploit if possible to the fullest
    • If you have a home loan for an affordable housing project, you can avail additional tax benefits
    Tax

    Ask any taxpayer for their one big wish and chances are you will hear them want income tax to go away completely. While that is too much of a wishful thinking today, there are definitely ways to reduce one’s tax liabilities. On its part the Income Tax Act has created provisions by which taxpayers; especially salaried individuals can claim certain deductions in order to save on taxes. However, to avail the benefits of such deductions, the individual must ensure proper tax planning during the year. Do not be a victim of starting late to save taxes or planning to save for it.

    Typically, tax deductions are available on the Gross Total Income (GTI) of the taxpayer and income tax is levied on the balance income, as per the tax slabs in force that the taxpayer falls in. The advantage of planning comes into play here because, if you prepare in advance, the chances of extracting the most of your tax savings will be possible. Moreover, planning gives you that much more time to make tax planning be aligned with your overall financial plans. Here are five ways in which you could save tax in a legal manner and smartly.

    Savings under Section 80C, Section 80CCC and Section 80CCD of the Income Tax Act

    This is by far the biggest window available to save taxes. To encourage the habit of saving, the tax authorities and the government permits certain investment-linked deductions, provided the amount is invested in instruments as specified in Section 80C, Section 80CCC & Section 80CCD of the Income Tax Act. The maximum collective deduction in a financial year allowed under Section 80C, Section 80CCC & Section 80CCD is Rs 1.5 lakh.

     

    The most common investment instruments covered under Section 80C, Section 80CCC & Section 80CCD are: Public Provident Fund Accounts (PPF), 5-Year Tax Saving Fixed Deposit, Pension Plans Contribution to Employee Provident Fund (EPF), Life Insurance Policy, National Savings Certificate (NSC), National Pension Scheme (NPS) and Equity-Linked Savings Scheme (ELSS) and few others. There is also provision to for an individual taxpayer to claim an additional deduction of Rs 50,000 U/s 80CCD by investing in the NPS.

    Tax savings with home loan

    If a taxpayer individual has taken a home loan, then they are entitled to claim the deduction for repayment of the principal amount (Deduction of the Principal amount under section 80C), as well as the interest of the home loan (Deduction of the Interest amount under section 24). The maximum deduction allowed under Section 80C is Rs 1.5 lakh and under Section 24, it is 2 lakh.

     

    Savings under Section 80D

    > Health insurance works as a shield and protects a person and his family from any financial crisis during a medical emergency. It’s the insurance company which bears the cost of treatment, and ensures that the policyholders can avail the best medical assistance. Fixed benefit health insurance plans provide comprehensive coverage against critical illnesses like heart diseases and cancer. The Income Tax Act permits an individual to save tax through deductions if the taxpayer has paid a premium for insuring their health or the health of their family members like parents, spouse and children.

     

    Tax Saving with House Rent paid

    If a taxpayer is staying in a rented house and is receiving House Rent Allowance (HRA) from his employer, they can claim deduction U/s 10(13A) of the Income Tax Act. The least of the following will be considered as deduction from the individual’s salary: Actual HRA received from the employer or Payment of actual rent in excess of 10 per cent of basic salary or 50 per cent of the basic salary (if the individual is staying in a metro city) or 40 per cent of the basic salary (if the individual is staying in a non-metro city).

     

    However, if the individual is a non-salaried person and does not receive HRA, or does not own a residential property, they can still get the deduction of house rent paid during the year from their taxable income under Section 80GG of the Income Tax Act. In this case, the least of the following will be considered as deduction from the individual’s Gross Taxable Income: Rs 60,000 per annum or rent paid less 10 per cent of adjusted total income or 25 per cent of total income for the year.

    Tax Saving through Education Loan

    Under section 80E of the Income Tax Act, an individual can claim tax deduction on an education loan (for higher studies), if the loan is for them, or their children, spouse or even for a student of whom they are legal guardians. However, only repayment of interest on the education loan is allowed as deduction. That means no deduction on the repayment of the principal amount of loan is allowed. However, the good thing is that there is no maximum limit to claim deduction U/s 80E of the Act for the interest repayment of education loan. The deduction U/s 80E for the education loan is available to an Individual assesse and not to a Hindu Undivided Family (HUF).

     

    Related Articles

    How to verify Income Tax Return

    To authenticate the e-filing of income tax return, income tax departmen..

    Tax Planning

    Income streams you need not pay tax on

    Proceeds from life insurance: Life insurance death ..

    Tax Planning

    5 things to do after filing Income Tax Returns

    Filing tax returns is a chore for most salaried taxpayers. You need ..

    Tax Planning

    You may also like this

    Money Back Plan

    Exide Life My Money Back Plan

    Exide Life My Money Back Plan is designed to help you plan your life securely and achieve your goals.

    Read More
    • Key Links

    • Buy Online
    • Buy Term Insurance
    • Buy Zero Cost Term Insurance
    • Buy Smart Term Edge
    • Buy Heart & Cancer Insurance
    • Buy Single Premium ULIP Plan
    • Buy Investment with Insurance Plan
    • Buy Savings cum Insurance Plan
    • Buy 5 Pay Savings Plan
    • Get a Quick Quote
    • Term Plan Calculator
    • Financial Calculator
    • Have Queries?
    • To Buy Policy Online : 1800 419 0808
    • For Policy Servicing : 1800 419 8228
    • Write to Us
    • Life Insurance Plans
    • Smart Term Pro
    • Smart Term Edge
    • Term Insurance Comparison
    • Critical Illness Insurance
    • Term Riders
    • Retirement & Pensions
    • QROPS
    • Health Insurance
    • Critical Illness Rider
    • Group Insurance Scheme
    • Group Insurance Policy
    • Group Term Life Insurance
    • Group Gratuity Scheme
    • Group Critical Illness Insurance
    • Employees Deposit Linked Insurance
    • Investment Options
    • Endowment Plans
    • Endowment Assurance Plan
    • Secured Income Insurance Plan
    • Long Term Investment
    • Tax Savings Investments
    • Single Premium ULIP Plan
    • Child Plans
    • Child Investment Plans
    • Customer Service
    • Track your Application
    • Track your Service Request
    • Claims
    • Claim Forms
    • Track your Claim
    • Check Unclaimed Amount
    • About Us
    • Management Team
    • Media Centre
    • Awards and Recognition
    • Corporate Social Responsibility
    • Forms
    • My Money Book
    • FAQs
    • Term Insurance FAQs
    • Online Term Insurance FAQs
    • Life Insurance FAQs
    • Retirement & Pension FAQs
    • Child Plans FAQs
    • Savings and Investments FAQs
    • Blogs and Articles
    • Video Library
    • Security Tips
    • Privacy Policy
    • Tax Center
    • Withdrawn Products
    • Sales Illustrator
    • My Connect
    • About E-insurance
    • Terms of Use
    • New Business Premium
    • IRDAI
    • policyholder.gov.in
    • Member of the Life Insurance Council
    • IRDAI IGMS
    • Modification in NAV Computation
    • Grievance Redressal
    • Disclaimer
    • DNC (Do Not Call)
    • Intellectual Property Rights
    • Phishing
    • API & Development

    IRDAI notice : Beware of Spurious/ Fraud Phone Calls: IRDAI is not involved in activities like selling insurance policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint.

    Exide Life Insurance Company Limited.
    IRDAI Registration Number: 114, CIN:U66010KA2000PLC028273
    Registered Office: 3rd Floor, JP Techno Park, No. 3/1, Millers Road, Bangalore- 560 001, India.
    2020 Exide Life Insurance Company Limited. All rights reserved.

    • IRDAI Public Notice on Spurious Calls
    • Sitemap
    • FAQ
    • © 2020 Exide Life Insurance Company Limited
    loading

    Please rotate your screen for
    optimal experience

      • Share via:
    Buy Online :
    • Smart Term Edge
    • Single Premium ULIP
    • Locate a Branch
    • Service Queries
    • Speak to our Expert
    • Smart Term Edge
    • Single Premium ULIP
    • Locate
    • Speak to our Expert
    • Buy

    Have Us Call You

    Disclaimer


    By submitting your contact details (Telephone number), you authorize Exide Life Insurance and/or its authorized service provider to verify the above information and/or contact you in relation to the insurance products sold by Exide Life insurance even if this telephone number is presently or subsequently registered on the Provider. Do Not Call/Do Not Disturb Register or the National Do Not Call Register.

    Please enter first name
    Please enter a valid Birth date
    Please enter a valid email id
    Please enter mobile number Please enter valid number
    Please select gender
    Please select state
    Please select city
    Please select best date to call
    Please select best time to call
    Please select Preferred purchase mode
    Please select Where did you find about us
    Disclaimer Disclaimer
    Generate OTP Reset

    *Clicking on Generate OTP will send a One Time Password to the entered Mobile Number. Please use this password for verification

    Enter the OTP which was sent to your number

    Please enter OTP Please enter correct OTP or Regenerate OTP Your OTP has expired. Please Regenerate OTP.
    Submit Please wait Re-generate OTP
    You have exceeded the number of times an OTP can be generated, request you to please try after sometime.
    OTP Regenerated. Please enter the new OTP
    *The OTP will be valid only for the next 15 minutes. In case, if you have not received the OTP, click on Regenerate OTP.

    Have Us Call You

    Verification Successful

    Thank you for visiting our website and showing interest in Exide Life Insurance. Our representative will get in touch with you shortly.

     

    Back To Home