[BEST] way to save income tax for 2018- 2019

how save income tax

It’s the season of the year of return falling for the year 2018 to 2019 it is time when most of the Indian salaried class employee think about  tax saving tips  investments. Whenever many people take care of tax saving they only think about some option of 80C but there are many option available in 80C and other income section that can save your tax The maximum deduction for income taxpayers u/s 80C is  1.5 lakh taxable income,  do you know what are some other investment options comes under section 80C? Some of you know that investment in PPF and ELLS (Equity Linked Saving Scheme) comes under Section 80C

13 Tax saving investment options under Section 80C

Section 80C is the most important for deduction It allows many ways to save tax by deducting the amount spent, invested or contributed at different schemes. Here are the  13 common ways to save tax under Section 80C.

  1. Contribution to Employee Provident Fund (EPF)
  2. Contribution to the Voluntary Provident Fund (VPF)
  3. Contribution to Public Provident Fund (PPF)
  4. Superannuation
  5. Life Insurance Premium
  6. Equity Linked Saving Schemes (ELSS)
  7. National Saving Certificates from Post offices (NSC)
  8. Children Education Fees
  9. ULIP {unit linked insurance plan}
  10. Tax Saving Fixed Deposit
  11. Housing Loan Principle Repayment
  12. Sukanya Samriddhi Yojna
  13. NPS { national pension schemes}

Buy insurance.
Buying lifestyles insurance plan serves two essential purposes: It protects your family’s future in your absence with the policy money, and it gives a tax advantage under Section 80C of the Income Tax Act, 1961. The premium you pay closer to existence insurance – term, ULIP (Unit Linked Insurance Plan), endowment, money returned – is tax deductible up to Rs 1,50,000 per year. So, you stop up safeguarding no longer simply your future, however, reduce tax as well.

Sukanya Samriddhi Yojna
A maximum of Rs 1,50,000 can be deposited in the Sukanya Samridhi Account for a female child. The quantity deposited shall earn an activity of 9.1% (for the financial 12 months 2014-15). This activity is absolutely exempt from tax. A minimum of Rs 1,000 must be deposited in a year. Receipts on maturity from the account are tax-free

ULIP (Unit Linked Insurance Plan)
ULIPS bought with existence insurance cowl for deduction under section 80C. Includes Contribution to Unit Linked Insurance Plan of LIC Mutual Fund e.g. Dhanraksha 1989 and contribution to Other Unit Linked Insurance Plan of UTI

Equity-linked savings schemes

These are mutual fund products and carry market risk. Like all tax saving options, these plans have a lock-in period of three years. An ELSS is like any other equity fund. However, the lock-in period is three years. It comes with all the usual trappings of an equity fund, including the choice between dividend and growth options, and systematic investment plans (SIP). Under the IT Act, investors investing in an ELSS can claim benefits under Section 80C. The limit under this Section is Rs 1 lakh. The dividends earned in an ELSS are tax-free. The returns at maturity are also tax-free

* Buy health insurance
If you are questioning on how to save tax below another part of the IT Act as an alternative than Section 80C, then you have to consider buying health insurance. Health insurance plan protects your savings and earnings from the excessive prices of taking medical remedy for your self or your cherished ones. Meanwhile, it is a good tax saving option for the salaried as nicely – you can declare a rebate for premiums paid for the fitness design below Section 80D, up to Rs 25,000 per year. You can claim up to Rs 50,000 for premiums paid on the insurance policies in your parents’ name. The premiums may also be paid for fitness insurance for yourself, spouse, dependent dad, and mom or children.

Thinking of investing in the NPS?

The  Pension Scheme  NPS can be used to save tax. Invest in the NPS and avail a deduction up to INR 1.5 Lakhs a year, under Section 80 C of the income tax act. You can also avail an extra deduction of INR 50,000 under Section 80 CCD (1B) if you invest in the NPS. This benefit is over and above the INR 1.5 Lakh a year, you get under Section 80 C. Fall in the highest tax bracket of 30%? NPS is a tax avenue you must consider On maturity of the NPS at 60 years, you have to compulsorily avail an annuity sketch up to 40% of the corpus. Out of the ultimate 60% of the corpus which you withdraw as a lump sum, 40% is tax-free. You pay tax on the closing 20%, relying on which earnings tax slab you fall below

Take a home  loan
Buying a domestic at a time when actual estate prices in India is prohibitively expensive, is possible with the help of a home loan. Not solely does the loan finance the house purchase, but it is also a suitable tax saving funding as well. You can declare deduction and store tax underneath  Section 80C for important mortgage reimbursement of up to Rs 1,50,000 (increased to Rs 2,00,000 for senior citizens). Meanwhile, you can claim the deduction on the home mortgage interest paid to the bank, up to Rs 50,000 under Section 80EE

, tax planning for salaried assessees can be done through
Salary Restructuring
• An employee can shape or restructure his salary so as to decrease the tax outgo on his complete revenue through availing of exempt allowances, advantages, and reimbursements.

• There are sure allowances, benefits, and reimbursements that are either exempt from tax or valued at a lower price depending on certain conditions.

 • The income can be restructured in a way as to separate the allowances, benefits and real reimbursements from the earnings issue and avail the tax benefits allowed on these.
• Normally the agency pays the salary and the employee makes an expenditure out of that.

• However there are positive charges for which the employer makes a particular payment, there are tax advantages related with such payment.
• Therefore if a worker is in all likelihood to incur such expenditure that
if taken in the structure of an earmarked charge separate from the earnings and paid by the employer,

• affords tax benefits, he should utilize the tax advantage through taking payment for such expenditure as a benefit, allowance or repayment and separate it from the salary component.
Examples of such earmarked benefits (separate from the salary) are below:

 Rent Free Accommodation or House Rent Allowance can be availed in case the taxable income is low.
• If the taxable earnings are excessive the valuation of the perquisite ought to be excessive resulting in higher tax outgo
Uniform allowance: Expenses on purchases of employees’ uniform can be paid or reimbursed by means of the employer. Uniform allowance is no longer considered as a perquisite u/s 10 (14). This however wishes to be a uniform and no longer any civil dress.

Telephone facility acquired with the aid of a worker at his residence is no longer taxable in the palms of the employee as in opposition to telephone allowance which is absolutely taxable.
• The employee can avail the facility of an organization vehicle (as also its renovation and going for walks expenses) from the employer.
The perquisite price is nominal considering genuine expenses on car.

Medical reimbursements are exempt up to Rs.15,000 p.a. as against scientific allowance which is thoroughly taxable.
These ought to be structured as a phase of the salary.

save income tax


Public Provident Fund – is a save option for moderate investor it comes with lower risk. The interest rates are always higher than marker interest rates. The lock-in period of 15 years.


• if you take advantage of section 80G donations must be made only to specified trusts.  The tax breaks  may vary according to the trust law  to which you have donated
Educational loan
• The   loans  for taken for higher  training and education are additionally eligible for deduction from your whole earnings under Section 80E
• There is no monetary ceiling on the interest you can claim as a deduction
• The loan needs to have been taken from a financial organization or an authorized instructional group
Medical treatment
• Any expenditure for the scientific remedy (including nursing) of a handicapped person, coaching and rehabilitation of a man or woman suffering from a everlasting physical incapacity (including blindness) or from intellectual retardation,
• qualifies for a deduction under Section 80DD up to Rs 50,000.
• if in  case of disability the claim can  be allowed  up to Rs 75,000

Some other option saving you tax

1.Focus on Investments, Not Tax Saving:

As a rule of thumb, do no longer take any steps solely with the purpose of saving tax. Instead, the center of attention on making investments and selecting money that can supply you and your family member long-term benefits.

2.Spread your Income Tax Rebate:

In addition, medical bills, rent receipts, conveyance bills, travel bills, training loans, health insurance premiums or Mediclaim receipts can also be used for tax financial savings underneath Section 80C. You can additionally take the help of a tax calculator to plan your investments and expenditure to decrease the quantity of tax you want to pay. To get most benefit, make sure you start your income tax saving planning when the fiscal yr starts off evolved (April).

3.HUF Creation: HUF is viewed as a separate entity which has its personal PAN No and is therefore taxed separately.
This helps to separate tax obligations of a character from that of his family.
Tax slabs of HUF are same as that of an individual and qualify for all the tax advantages u/s 80C, 80D, 80G, 80L and so on.
It additionally enjoys exemptions under Section 54 and 54F with respect to capital gains.
The HUF is also entitled to declare deduction for interest on self-occupied residence property of Rs.2,00,000 in the year as per section 24 of the income tax act


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Deepanshu sharma

HI friends I am Deepanshu Sharma is the person behind COMINGBLOG.COM I share with you some extra personal finance tips and helping you become financially independent,

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