Income Tax Saving Options - Part 1 | Save Income Tax FY 2018-19 | FinCalC [VIDEO]

What is going on gangsters! Welcome to another post in which we are going to see the various options that can be used to save Income Tax in this FY 2018-19.

This and the upcoming post (Part 2) are going to be very important if you are a beginner and have just started with your career. It is also important for those who want to gain knowledge about the various options to reduce their Income Tax Liability.

WATCH VIDEO:

Let us see what are the Income Tax Saving options:

1. STANDARD DEDUCTION

If you are an Employee or a Pensioner, you must be aware about the Standard Deduction of Rs.40,000 that was introduced in Budget 2018. This is a flat deduction that has replaced the existing Medical Reimbursements and Travel Allowance options, that contributed to a total of Rs.34,200 together.

2. SECTION 80C

This is a class of schemes which can help you to reduce your Taxable Income. Schemes like Provident Fund, Public Provident Fund, Equity Linked Savings Scheme, Life Insurance Policies, 5-year Fixed Deposits fall under this SECTION 80C.
You can invest and claim a maximum of Rs.1,50,000 in these schemes in a Financial Year under SECTION 80C in order to reduce your Income Tax.

3. SECTION 80CCD(1B)

This is a little lesser known section where you can save and claim a maximum of Rs.50,000 in a Financial Year and save Income Tax.
The scheme named as NPS (or National Pension Scheme) falls under this category. Moreover, this scheme also helps you in saving for your retirement and can be treated as Retirement Fund apart from saving on your Income Tax.

4. SECTION 80TTA

This isn't a section wherein you invest your money to save Income Tax, but it helps you in earning Tax-free interest money from your Savings Account
For the FY 2018-19, maximum of Rs.10,000 can be claimed as deduction under this Section for the interest income that you have earned through Savings Account if your age is below 60 years.
For the people of age 60 years or above, the limit has been increased to Rs.50,000 for FY 2018-19. This way you'll earn interest money from your Savings Account, without paying Income Tax on this Income.

Take maximum benefits of above mentioned schemes to reduce your Income Tax before the end of FY 2018-19.
Stay tuned for the PART 2 of Income Tax Saving Options.

___

I'd love to hear from you if you have any queries about Personal Finance and Money Management.

Download our Free Android App - FinCalC to Calculate Income Tax.

Follow the Blog and Subscribe to YouTube Channel to stay updated about Personal Finance and Money Management topics.
___