Save income tax just by certain simple investments
Tax-saving is an important part of financial planning. An intelligent tax-planning strategy can serve the dual objective of helping individuals meet their financial goals and save tax in the process.
Here is a list of some of the best tax saving investment options and plans for 2022 that can help individuals maximize tax benefits:
|Sr No.||Tax Saving Investment Options||Tax Benefit Under Section|
Life Insurance, PPF
|Section 80C (Premium) Section 10(D) (Death / Maturity)|
|Section 80CCC(sub-section under Section 80C)|
Health insurance or Mediclaim
Tax-saving mutual funds
|Section 80C Section 10(D) (Death/Maturity)|
While most people know the tax savings they are eligible for under Section 80C, there are many other lesser known options. Some tax deduction options are medical insurance or expenses u/s 80D, education loan u/s 80E, NPS u/s 80CCD, employer allowances, HRA/LTA, capital gains harvesting, advance tax saving, etc.
It is mandatory to file ITR if you earn income beyond the basic tax exemption limit. However, filing an ITR is always advisable even if the person is not mandatorily required to file the ITR according to the income tax act.
EPF: Around Rs 30,000 to Rs 72000, i.e., 12% of your basic + employer contribution
Term plan insurance - Rs 12,000 premium (Around Rs 1 Crore cover)
ULIP or endowment plant - Rs 12,000 premium
ELSS mutual funds - Rs 60,000
Children's Education fees: Rs 25,000 to Rs 1 lakh
ITR serves as proof of income for credit card and loan applications at banks, opening bank accounts, and as proof of income at any government institution.