Tax Tips Guide ! Save Tax ! Help Filing Income Tax Returns

Under the Income Tax, India.

If you have filed your income taxes or if you are filing your income taxes for the first time, then Section 80C is a must read section for all. Section 80C is the single most important provision under Income Tax India. You save a lot of Tax money utilizing this section carefully.

One can invest upto Rs 1 Lakh in various approved schemes to save Tax. This is irrespective of how much money you earn and under which tax slab does your taxable income lie.

Investing money properly will help you save taxes of about (upto) Rs 30000. This investment of Rs 1 Lakh is deducted from your taxable income thereby reducing the tax liability.

The invesments which you can make -:
1. Contribution to Provident Fund
2. Contribution to Public Provident Fund.
3. Payment of life insurance premium
4. Investment in pension plans
5. Investment in Equity Linked Saving Schemes of mutual funds
6. Investment in Infrastructure bonds
7. Investment in National Savings Certificate

The amount of money which you pay for your Home loan is eligible for income tax deduction. If you are paying education fees for your children then too, this amount will get deducted from your income.

Few points to be noted here are-:
1. There is a maximum limit of amount which you can invest under each scheme. This maximum limit vary from scheme to scheme.

So, keep the above points in mind while making an investment or filing your tax returns. Its better to invest in those schemes which will help you save taxes. So, next time you visit your Charted accountant, do ask him/her about Section 80C.