How to Save Income Tax on Income from Salary for Individuals?
Income Tax on salary can be saved in many ways. People and organizations are often imprecise to this part. People have to keep a self-check on the different ways in which Tax on Income can be saved. For organizations, invoicing software like Accoxi which manages your company’s tax system can do the job just fine. Accoxi is also referred to as tax-ready software which has the properties of best GST invoicing software that comes with how tax can be managed and returns to be filed.
Following are the ways in which individuals and organizations can save Income Tax on the income earned:
- As per Section 80C, up to Rs.1.5 lakh limit can be applied to FD under 5 years tenure, Provident Fund (PPF) with tax-free rate of interest, ELSS funds, National Saving Certificate (NSC), Life Insurance Premiums, National Pension Systems (NPS), Home loan repayment, tuition fee payment, Employees Provident Fund (EPF), Senior Citizens Saving Scheme (SCSS) and Sukanya Samriddhi Yojana.
- Contributions made to National Pension Scheme is tax deductible up to Rs.50000 (which can be withdrawn at 60 years of age)
- Health insurance premium payments offers tax deduction of up to Rs.25000
- Reduction on payment of rent qualifies you for tax deduction up to Rs.60000 per annum
- Home loan is tax deductible up to Rs.2 lakh per annum
- Interest on savings account is tax free up to Rs.10000 per year and for senior citizens the limit rises to Rs.50000
- Charity donations are tax deductible
Accoxi is the free invoicing software for small business, medium business or large business. Your organization’s (or as an individual) income graph can make drastic turns on the positive side, if tax planning is done wisely. As smart invoicing software, tax structures and tax deductibles options are incorporated in Accoxi for easy tax management of your business or income.