RESUME APPLICATION PAY PREMIUM
Fund Performance

Fund Performance

Knowledge Center

Knowledge Center

About Us

About Us

Tools and Calculators

Tools & Calculators

Quick links

Mobile (Download app)
  • Webpages
  • Documents
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment

For NRI Customers

(To Buy a Policy)

(If you're our existing customer)

For Online Policy Purchase

(New and Ongoing Applications)

Branch Locator

For Existing Customers

(Issued Policy)

Fund Performance Check

RESUME APPLICATION PAY PREMIUM

What do you want to do?

Quick links

Mobile (Download app)

Download HDFC Life App

Buy plans, track your policy, make renewal payments & monitor fund performance with HDFC Life App, Download Now!

Apple Logo Go to Google Play Store

Best Tax Planning Tips in India

down-arrow
Tax Planning Tips
March 07, 2024

Are you averse to the idea of paying a large portion of your income as taxes? If yes, you are not alone. Most people feel the pinch while paying taxes every year. The newly implemented income tax slab rates witnessed several changes in the income tax rates. However, taxes are crucial for the development of the nation and cannot be avoided. Hence, certain provisions have been made by the government to reduce the burden on taxpayers. One can take full advantage of exemptions, deductions, and rebates permitted by the Income Tax Act. The financial measures taken to minimize taxes is known as tax planning. It involves arranging your affairs in a certain manner that will help you save taxes. Here are few of the simple and effective tax planning tips:-

  1. Utilizing Section 80C:

    To encourage the habit of saving among the citizens of the country, the government of India allows certain deductions on the amounts invested in specified instruments under the Section 80C. The most popular investment instruments for the purpose of tax planning are:

    • PPF accounts
    • 5 year tax saving deposits
    • Equity mutual funds
    • Pension plans
    • Life insurance policies

    2. Investing in these instruments wisely, can serve a dual purpose of meeting financial goals and tax savings concurrently. By Investing in these instruments you can bring down your taxable income significantly and save more of your hard earned money.

  2. Salary Restructuring:

    Many Companies allow restructuring a few salary components in order to reduce your tax liability. If you are in good term terms with your HR department, talk to them about getting certain allowances included in your salary. Opt for food coupons instead of lunch allowances, as they are exempt from tax up to Rest 60,000 p.a. Also include allowances like medical allowance, transport allowance, education allowance, and telephone expenses as part of the salary as they are non- taxable.

  3. Ask for House rent Allowance:

    House rent allowance (HRA) is a salary component which is given out by most employers. In case you don't have this component included in your salary, ask your employer to do so. If you are employed, the HRA can be claimed as an exemption under the Income Tax Act if you stay in a rented property.

  4. Charitable donations:

    Charitable contributions are deductible up to 10% of your income under Section 80G. However, you must ensure that you obtain a receipt from the institution and a copy of their income-tax exemption certificate instead of giving away the donation without any acknowledgement. Only if you produce receipts of the donation, you will be eligible for a tax deduction by contributing to a noble cause.

Plan Income tax

Related Articles

ARN: ED/12/19/17049

Term Plan Articles Term Plan Articles

Investment Articles Investment Articles

Savings Articles Savings Articles

Life Insurance Articles Life Insurance Articles

Tax Articles Tax Articles

Retirement Articles Retirement Articles

ULIP Articles ULIP Articles

Health Plans Articles Health Plans Articles

Child Plans Articles Child Plans Articles

Popular Calculators Popular Calculators

Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

LinkedIn profile
Author Profile Written By:
Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

LinkedIn profile
Reviewed By Reviewed By:

Here's all you should know about life insurance.

We help you to make informed insurance decisions for a lifetime.

Income Tax Saving Tips for Young Earners

Income Tax Saving Tips for Young Earners

Many young earners are unaware of the whole tax system & its working. Here is a list of income tax saving tips for young earners to help them save more!

What is Tax Declaration Form? - Process to File Income Tax Declaration

Tax Savings Strategies for Salary above Rs 30 lakh in India

Best Investment Options for Senior Citizens in India

Find the best Investment Options For Senior Citizens in India with HDFC Life. Uncover senior citizen investment options tailored for stability and growth.

Best Investment Options for Senior Citizens in India
What is GST on gold? Previous
Old Vs New Tax Regime: Which One Suits Your Financial Goals Better? Next
HDFC life
HDFC life

HDFC Life

Reviewed by Life Insurance Experts

HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER

We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.

Popular Search

Popular Searches