Paying tax signals the commencement of a new financial year. For the process of taxation, the year in which income is earned is referred to as the previous year, and the following year in which the taxes are assessed is accepted as the assessment year. As a citizen of India, every individual is liable to pay taxes to the government under various heads such as salary, rental income, capital gains etc.
If you do not plan your taxes in advance, you may have to part with a substantial part of your earnings while paying taxes. Which is why, individuals resort to various tax saving measures in order to save taxes. With adequate tax planning you can save a considerable amount on money on taxes. When the end of the financial year approaches, most of the people start investing in random tax saving plans without giving any thought. Due to this reason many of us end up with unwanted insurance policies and NSCs that do not fit into our financial portfolio. Besides such tax saving schemes, there are many other tax saving option available that could save you a lot of money. Here are a few tax saving tips you cannot ignore:-
House Rent Allowance: - House Rent Allowance or HRA is a component that is usually included in your salary by your employer. In case you don’t have this component as a part of your salary, ask your employer to include it. An employee can claim exemption on his HRA under the Income Tax Act if he resides in a rented house and is in receipt of HRA from their employer. In order to claim the deduction, an employee must actually pay rent for the place in which he resides.
Equity linked saving schemes: - Equity linked saving schemes such as mutual funds are the best way to enhance your wealth and save taxes at the same time. Moreover, these investments are professionally managed and involves much less risk than investing in the share market. With innovative services such as the YES BANK 3 in 1 accounts, you can manage your investments as well as savings and stock investments simultaneously. YES BANK 3-in-1 Account facilitates to offer you a complete online wealth-management solution. With an easy-to-use interface, regular research reports & updates and state-of-the-art technology, you can now navigate through stock markets effortlessly. To know more, click here
Tax Saving Fixed Deposit: - If you are a risk averse investor, fixed deposit is the best tax saving investment tool for you. You can save taxes under various sections of the Income Tax Act of India. These deposits are designed for guaranteed returns, which are substantial, over a period of time. The best part about investing in fixed deposits are the guaranteed returns coupled with high tax savings. At YES BANK, we understand this need for security. Our secure Fixed Deposits provide you greater earnings with the flexibility of maintaining your funds in accessible units; therefore, you do not need to break the entire deposit. Enjoy this privilege in different ways as YES BANK offers you a range of Fixed Deposit schemes that give you a good rate of interest, thereby providing you with a strong sense of security. To know more,click here