Tax Saving Guide 2019: These 9 points can help you save tax

NEW DELHI: The best way to reduce

tax

liability is investment. Investment not only saves your taxes but a smart choice of investment option will also help you increase your wealth in long run.


However, taxpayers are advised to evaluate the pros and cons of all the investment options available before making a final decision. Here are some of the pointers that will help you reduce the tax liability on your taxable income:

1) ELSS: Equity linked saving schemes (ELSSs) is a great way to make your profits 100 per cent non-taxable. However, there is a condition not to sell your equity shares before a period of one year as anything less than 12 months may incur tax on profits.

2) Insurance Policy: Premium paid on insurance policies is allowed as deduction from your total income under the Section 80D of the Income Tax Act. Deduction up to Rs 15,000 is available for insurance of self, spouse and dependent children. This is one of the best options and can be part of tax planning.

3) Loan repayment: The government allows tax benefits for individuals who are repaying education and home loans. So, in case you have taken any such kinds of loan, you can claim deduction under Section 80C of the Income Tax Act. You can also claim benefit on premium paid for life insurance, contribution towards statutory provident fund or superannuation fund, contribution towards public provident fund scheme, subscription to units of mutual fund equity linked saving scheme notified by the central government, etc.

4) House Rent Allowance (HRA): House Rent Allowance (HRA) can be claimed on the amount paid as rent to landlords. However, this is valid only when you are staying in a rented accommodation. To claim HRA, you need to provide sufficient supporting documents such as rent agreement, rent slips, PAN card of landlord etc.

5) Medical Bills: Many companies add an annual amount of Rs 15,000 to the salary component as the non-taxable income. You need to submit your medical bills to get the reimbursed amount. It's a great way to save tax.

6) Communication Bills: You can also claim tax benefit on your communication bills such as telephone, mobile bill and internet expenses.

7) Conveyance Bills: You can avail tax benefits per month from your company for the conveyance expenses. It an easy option to save tax as you do not have to submit any invoices or proof to avail the same.

8) Meal vouchers: Some companies also provide an option of meal vouchers or gift vouchers such as Sodexo coupons that are out of taxable ambit.

9) Leave Travel Allowance (LTA): You can utilize LTA for domestic vacations taken with your immediate family. You will not be taxed on travel expenses for yourself and your dependents.

Stay informed with the latest Business News on Times of India. Explore updates on International Business, gain insights with Financial Literacy tips, and make use of Financial Calculators. Don’t forget to check the list of Bank Holidays in 2025, including Bank Holidays in January.