7 Best Ways Salaried Professionals Can Save Taxes

Utilize deductions under Section 80C

Maximum deduction available under Section 80C is Rs 100,000 per annum. Thus if your salary is equal to or more than Rs 250,000 then you should utilize the entire Rs.100,000 limit. If suppose an individual gets salary of about Rs.600,000 and he only utilizes half of Rs.100,000 then he will have to pay Rs.15,450 as additional tax. Thus try to utilize the entire limit.

Few investments that are qualified under Section 80C are life insurance premium, public provident fund, equity linked savings scheme, national saving certificate, fixed deposits with banks or post office for five years etc.

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 Rs.200,000 and donations to specified institutes or funds.

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