8 Simple Ways to Save Your Taxes

3) Properly Structure your Housing Loan

The Principal repayment of a housing loan is eligible for a deduction up to Rs.100000. The interest paid on a housing loan is eligible for a deduction up to Rs.150000. If the housing loan is for a sizeable amount, then it is possible that the principal repayment and interest may exceed the specified tax exemption limit. To utilize the maximum tax benefit, an individual can consider going for a joint home loan with his/her spouse or parent or sibling. This will make sure that both the co-owners can claim tax deductions in the proportion of their holding in the loan.

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4) Tax Plan in Sync with Overall Financial Plan

You should not do your tax planning in isolation. You need to do it in sync with your overall financial plan. So a tax plan is not only to save taxes but also should assist you in achieving your other financial goals like children's higher education, buying a home or retirement.

5) Avoid Last Minute Rush

In fact the right time to do the tax planning is in the beginning of the financial year. If you postpone your tax planning even now and do it in the last minute, then you will not be able to choose the right investment. Is the investment sound and profitable? Are there any other better options? You will not be able to choose the best scheme and you may settle with a mediocre one.

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