What is the maximum tax I can save?
The most popular avenue for tax-saving is section 80C of the Income Tax Act.
Under Section 80C, an amount equal to the investment you make in specified instruments or expenses, up to a maximum of Rs 1.5 lakh in a financial year, reduces your gross total income (GTI) by the same amount..
How can I save my maximum income tax in India?
1. Section 80CEquity Linked Savings Scheme: Equity Linked Savings Schemes are a type of mutual funds with a lock-in period of three years. … Senior Citizen Savings Scheme: … National Pension System: … Term Life insurance premium: … Public Provident Fund: … National Savings Certificates: … Tax-saving FDs: … Home loan repayment:More items…
How can I save tax on 7 lakhs?
Step 1: You can get a deduction of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act. You can do this by investing the entire sum into your PPF, or dividing it between your PPF, EPF, tax-saving mutual funds, and tuition fees paid for your children’s education.
Can I reduce my taxable income?
The simplest way to reduce taxable income is to maximize retirement savings. Both health spending accounts and flexible spending accounts help reduce tax bills during the years in which contributions are made.
Can I invest more than 1.5 lakhs in 80c?
Although there is no restriction on the amount one can invest in it, investments up to Rs 1.5 lakh in a financial year is exempt under section 80C of the Income Tax Act.
Is FD tax free?
Interest income from Fixed Deposits is fully taxable. … This Tax is Deducted at Source by the bank at the time they credit the interest to your account, and not when the FD matures. So, if you have a FD for 3 years – banks shall deduct TDS at the end of each year. (See below for more details on TDS on FDs).