Tax Rebate Instrument : Save Tax

December 23, 2015

Are you worried about pay heavy tax on your salary or income? Do you want save tax by a legal way on your investment. Then there are many financial instrument in which you can invest and save tax legally.

(1) Tax Rebate Under Section 80 (c) – There are many investment scheme and policies as life insurance policies , saving in bank etc. which are facilitated with rebate on tax by Section 80(c). If you invest up to Rs. one lakh in these policies then these investment will be excluding from your income. Means if you have yearly income of Rs. 10 lakh and you invest Rs. 1 lakh in any policies of which is facilitated with rebate in tax under section 80 (c) then your income will be considered as Rs. 9 lakh.

(2) Tax Rebate Under Section 80 (d) – This rebate is given on investment medi claim policies up to premium of Rs. 15,000. You can get more rebate if you deposit premium of your wife/husband, children and parents.

(3) Tax Rebate of Home Loan Interest – If you pay interest of your home loan up to Rs. 1.5 lakh then these interest money will be excluding from you total income.

(4) Rebate in tax by medical insurance – If your company is not providing medical insurance to you then you can get rebate in tax on investment in your medical insurance. Your investment in your medical insurance will be exclude from your income.

(5) Some other important financial instrument on which you can get rebate in your tax. –
(A) Employee Provident Fund And Public Provident Fund ( On Maximum Investment Rs. 70,000 in PPF)
(B) Investment in Pension Plan
(C) Mutual Fund Equity Linked Saving Scheme (ELSS)
(D) Specified Government Infrastructure Bond
(E) National Saving Certificate OR NSC
(F) School Fee of your children ( For only two children and maximum Rs. 20,000 for per children)
(G) Long Term Infrastructure Bond
(H) Investment up to Rs. 20,000 in Specified Long Term Infrastructure Bond

Comments (4)

Sites That Link to this Post

  1. Rishi | December 24, 2010
  2. Madhulika, Sagar (MP) | December 24, 2010
  1. Heera Kejriwal says:

    How can I calculate my income from stock trading? How much long time is considered as long term investment and short term investment.

  2. Munna Prasad, Guna says:

    Hi, How can I save tax from gaining from long term investment in stock market? I do not want pay any tax. My income is approx 1,50,000 per month. Please help me for how can I save my money from income tax department. Why I should pay tax when Government misuses my wealth in scams?

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