When it comes to taxation, we are concerned as well as confused for so many reasons. The questions that we can have may be as small as how much tax we would need to pay and as complicated as how much benefit can we get from our home or education loan. As a common man, we surely can’t understand or answer all the questions and therefore, the role of a financial expert or guiding source becomes inevitable.
The next year for our taxation would be Financial Year (FY) 2014-15 and this could also be called as Assessment Year (AY) 2015-16. The taxation is largely dependent on the nature of union budget that we have for the concerned financial year.
As per the Income Tax slabs for FY 2014-15, general public with more than Rs. 2.5 lakhs, Senior Citizens with an income of more than Rs. 3 lakhs and very senior citizens with more than Rs. 5 lakhs are liable to pay income taxes. As per the current financial year, following are few tax saving options that may be helpful in saving your taxes.
Any individual in India can avail a tax saving option of a maximum of Rs. 1.5 lakh, which would be deducted from his taxable income under section 80C, 80CCC and 80CCD. These sections apply for general investment, pension plans and central government employee’s pension plans, respectively.
This section comprises of investments made in Provident Fund (EPF/VPF), Public Provident Fund (PPF), National Saving Certificate (NSC), Senior Citizen’s Saving Scheme (SCSS), fixed deposits, life insurances, New Pension Scheme (NPS), Tax Saving Mutual Funds, etc.
Likewise, you can save taxes by investing under medical insurance or furnish bills of treatment for disable dependent and avail benefits under Section 80D, 80DD, 80DDB and Section 80U.
Some more tax saving options could be Equity Linked Saving Scheme (ELSS), Home Loans, Tuition Fee, Stamp and Registration Charges, Education Loans, Rajiv Gandhi Equity Saving Scheme (RGESS), Donation to charitable organizations, Donation to political parties or scientific research, just to name a few more.
If you search for tax saving options, you have plenty of them. What happens most of the times is that a common man is not aware in day to day life about tax saving options and comes to think about them only when his taxes are being assessed. And by that time, it is too late to invest in anything and thus difficult to save on taxes.
Paying taxes is certainly a great thing, but during such times of inflation like now, every common man is looking for some or the other way to save even a single penny. And that is perfectly fine as long as it is done within the domains of law.
Now, if you are looking forward to make some smart and right investments and thus get benefitted from saving taxes, search out for specific options that may suit your specific needs. Government has made several provisions for tax exemption. It’s just us who need to be aware of them.