ITR: If you work, you can save income tax in these 5 ways
5 Tax Saving Schemes For Salaried Person: If you work and file an Income Tax Return (ITR) under the old tax system, then there are many such schemes in which you can save tax by investing. Most of the schemes provide the facility to save up to Rs 1.50 lakh under Section 80C of Income Tax. You can save more tax by investing in other schemes also.
1. EPF
This is one of the most popular tax-saving schemes for working people. The company deducts a part from the salary as EPF and deposits some amount from itself in EPFO. You can avail of tax exemption under 80C on the amount deducted from your salary while filing ITR. The maximum discount on this is up to Rs 1.50 lakh.
2. PPF
This scheme is very good for saving tax and creating a big fund for the long term. In this, you can deposit the amount at your convenience. PPF accounts can be opened by visiting any bank. In this also, you can save tax by investing a maximum of Rs 1.50 lakh under Section 80C of Income Tax.
3. Life Insurance
You can also claim income tax exemption by investing in life insurance. Investment is made in this for the long term. By investing in life insurance, life also becomes secure. Investments made in this also get exemption under Section 80C of Income Tax. In this, you can avail a discount of up to Rs 1.50 lakh.
4. NPS
If you want a big fund after retirement, then investing in NPS is a good option. Its specialty is that this scheme also gives you a pension after retirement. In this, you get two types of income tax benefits. First, you can claim tax exemption up to Rs 1.50 lakh under 80C. Secondly, an additional exemption of Rs 50 thousand is also available under 80CCD(1b).
5. Health Insurance
By taking health insurance, you can also claim income tax exemption of up to Rs 25,000 on the annual premium. At the same time, you can also avail of tax exemption of up to Rs 5000 for health checkups. This exemption is available under Section 80D of Income Tax. On the other hand, if you have got your parents treated, then tax exemption is also available on that. But for this, it is necessary that the parents should be senior citizens. If you have done term insurance then you can avail tax exemption in this also.
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