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

Saving Income Tax in 2018-19

down-arrow
Saving Income Tax in 2018-19
November 19, 2016

Parting with your hard-earned money through taxes pinches your pocket. Therefore, you may seek to reduce your tax liability by taking advantage of numerous exemptions and deductions allowed under the Income Tax Act, 1961.

Following is a list of five tax-saving tips for the financial year 2018-19.

1.Restructure your salary

Restructure your salary in case your employer lets you do so. For instance, opt for food coupons as there is an exemption of INR 50 per meal. You may also include telephone expenses, transport allowance, education allowance, medical allowance, and uniform expenses, as a part of your salary, and avoid taxes on them by producing the actual bills at the end of the financial year.

2.Avail of deductions under Section 80C

Section 80C of the Income Tax Act allows deductions up to INR 1.5 lakhs on numerous investment instruments. This includes investments made in public provident fund (PPF), National Saving Certificate (NSC), Unit-Linked Insurance Plan (ULIP), home loan repayment, tuition fees, and mutual funds, among many others. Ensure you benefit from these exemptions and reduce your tax liability.

3.Look out for tax-saving opportunities beyond Section 80C

In case you have exhausted your limit of INR 1.5 lakhs under Section 80C, you may explore other options. For instance, you may purchase medical insurance for yourself, spouse, children, and parents and enjoy tax benefits under Section 80D. Besides, you may also consider making donations to charitable institutions and specified funds in order to avail of income tax benefit under Section 80G. Similarly, if you are running an education loan for higher studies, you may claim benefits under Section 80E.

4.Claim tax benefit on rent paid

In case you are a salaried individual living on rent, you may claim tax benefit on your House Rent Allowance (HRA). You may avail of a tax exemption on the lowest of the following three:

  • Actual HRA received from your employer
  • Actual rent amount paid minus 10% of your salary;
  • 50% of your basic salary in case you reside in a metropolitan area or 40% of your basic salary if you live in a non-metro area

5.Make your investment declaration on time

Most employers ask employees to make their investment declaration during the months of December or January. Remember to declare all investments that you have made in the past financial year. Doing this on time will help your employer get a clear picture of your taxable income so that they may deduct the appropriate amount of tax accordingly.

In addition to the aforementioned tips, you may also acquire an in-depth knowledge of the income tax slabs A.Y. 2018-19. Individuals with a taxable income of up to INR 2.5 lakhs do not have to pay tax. Those in the slab of INR 2.5 - 5 lakhs pay tax at the rate of 5%, while those falling under the taxable slab of INR 5 - 10 lakh will pay tax at the rate of 20%. Individuals with taxable income above INR 10 lakhs are taxed at the rate of 30%. Keep the income tax slabs in mind and be a well-informed taxpayer.

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 Slab FY 2024-25 and AY 2025-26

Income Tax Slab FY 2024-25 and AY 2025-26

The latest income tax slabs for FY 2024-25 and AY 2025-26, including new and old regime rates, deductions, key highlights for smart tax planning, and savings tips.

Tax Planning for Salaried Employees: Key Pointers to Consider

Income Tax Saving Tips for Young Earners

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

Investment declaration has to be done in the beginning of a financial year. Read to know what is form 12BB & the step by step process to declare investments!

What is Tax Declaration Form? - Process to File Income Tax Declaration
Financial Planning Tips for Beginners - Early Savings Guide Previous
Budget 2018 -Overview 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