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

Tax Savings Methods in India

down-arrow
Tax Savings Methods in India
October 23, 2023

Often, many of us don’t feel too good about the fact that the taxes cut into our pockets and deplete our hard-earned money. Saving income tax slab rates on the taxable income is one of the prime ways of efficient budgeting and saving money. A healthy budgeting ensures that you stay financially responsible and always spend carefully. Planning of taxes in very important as it ensures that you don’t end up paying more than what you should.

The taxation mechanism is quite complex and often, if you don’t plan well, you cannot be sure of any tax savings. Therefore, it is very important to stay ahead with better knowledge about tax savings. There are several methods by which you can ensure tax savings. Certain important ones are mentioned below:

  1. Deduction on rent paid (without HRA): As per the provisions of Section 80 GG of the Income Tax Act, tax benefits under house rent allowance (HRA) are covered.

  2. Home Loan Repayment: Your home loan EMIs can reduce the burden of taxes. You can get the benefit on both principal & interest component of your installments. If you are paying for your first house then you can save even greater amount of tax. All these deductions are covered under section 24, section 80C and section 80EE.

  3. Education Loan Repayment: Like the deduction available on tuition fees, your education loan EMIs also bring tax benefits to you. Income Tax Act has separate provision under section 80E to provide you this tax benefit for interest paid on your education loan.

  4. Employees Provident Fund (EPF): The contribution that you make to your EPF or PF account can be claimed as deduction under section 80C. The interest income & maturity amount that you get as a result is also exempt from tax if you have completed 5 years of service.

  5. NPS: Considered to be a secure option, this postal department saving scheme makes you eligible for section 80C deduction. Though interest earned is taxable, it also qualifies for deduction under section 80C.

  6. Sukanya Samriddhi Scheme: It offers higher rate of return on investment when compared to PF & PPF. However, this scheme is only available to parents or guardians of a girl child.

  7. Charitable donations: Charitable donations (capped at Rs.2000) make you eligible for tax exemption which is covered under section 80G.

  8.  Donations for scientific research or rural development:
    Any donation made for scientific research or rural development is eligible for deduction under section 80GGA of the Income Tax Act.

  9. Tax Benefit on Gratuity: Gratuity received on retirement or on becoming incapacitated or on termination or any gratuity received by the widow of the deceased employee, children or dependents is exempt up to Rs 10,00,000 (proposed to be enhanced to Rs 20,00,000)  subject to certain conditions.

  10.  Investing in ULIPs: If you have excess cash, you can invest it by using the top-up facility provided by ULIPs. You can avail tax benefits if the premium paid in this case is below 10% of the sum assured. This is possible through Sections 80C and 10D of the Income Tax Act. To sum up, ULIP gives you three-in-one benefits.

HDFC Life offers HDFC Life Click 2 Invest ULIP – a unit linked insurance plan that provides you market-linked returns and financial security.

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 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
Tax Saving Tips for an Annual Income of Rs. 7 Lakhs Previous
Everything You Need To Know About Saving Income Tax 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