6 Ways Salaried Professionals Can Save Huge Taxes

Deductions Under Section 80C: This section provides tax exemption up to Rs.1,00,000. To utilize benefits under this section you need to carefully analyze and sort out various investment options available and choose accordingly. Investments are the best tax-saving options, which includes, Employee Provident Fund, Public Provident Fund, National Saving Certificate, Bank FDs, Tax-saving infrastructure bonds, pension plans, Mutual Funds, ELSS (equity linked savings scheme) and (Unit Link Insurance Plan) ULIPs.

Leave Travel Allowance: A travel allowance from your office can save your taxes.

Leave Travel Allowance (LTA) amount is tax-free. Employee has to provide the valid domestic travel bills giving proof of undertaking the journey. There are no worries if you are unable to undertake the trip , and lost the tax-exemption benefit on Leave Travel Allowance for any concerned year; you can claim an extra exemption in the next turn of your LTA and have an added benefit of extra holidays.

Try to think beyond Section 80C: For individuals whose gross salary is beyond Rs.250,000 per annum, for them the tax deductions will be even more thus deductions under Section 80C will not be sufficient in such case. During such situations go for some more options for instance opting for home loans where the interest payments will be around Rs.150,000, medical insurance for spouse and dependent children  where the deduction will be up to Rs.150,000 and if for senior citizen parents then the deduction will be up to 200,000 and donations to specified institutes or funds.

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