Wednesday, September 17, 2014

How to Save income Tax on Salary in India for FY 2014-15 AY 2015-16

How to Save income Tax On salary in India for FY 2014-15 AY 2015-16

Every Salaried employee things of options or ways to save income tax on their salary in India. Currently if your Taxable Salary is more than Rs.10,00000 , you are in the 30% tax slab and that means you are ideally paying tax of Rs.300000 , which is very big amount. Kindly refer to Current Income Tax Slab and Rates for FY 2014-15 and AY 2015-16 

Some Common Questions Asked on Tax Saving Tips
  • How much you have invested in 80C investments. 
  • What is the income tax amount for 3,60,000 per annum for the Financial Year 2014-15 
  • How to save tax on interest earned on Fd for the Assessment Year 2015-16
  • How to save 100 % income tax for a salaried employee 
  • Is there any tax for depositing money in saving account 
  • What the options for state and central government salaried employees for saving tax?

Current income tax Slabs for FY 2014-15 and AY 2015-16
Income tax slabs for fy 2014-15
Income Tax Slabs for Fy 2015-15

So how to pay less tax on my salary ? This is a quite common question to most of us. Before you actually go and understand the tax saving tips , I request you to understand how the Income tax is calculated with example.

What are the ways by which you can Save Income Tax on Salary in India
  • Understand how your Income Tax is calculated
  • Calculate your Taxable income
  • Watch out for tax saving options which I am going to explain now
  • Understand the latest bugdet 2014-15 changes.
  • Prefer to take  home loans  to save tax
  • Prefer to take Insurance policies - Understand the Terms and Conditions.

10 Tax Saving Tips - You should know 

  1. Tax saving under Income tax Section 80C
  2. Save Tax by opting HRA  ( house Rent Allowances)
  3. Save Tax by Taking Home Loans and claiming tax exemption on both principal amount and home loan interest.
  4. Invest in Tax Saving Mutual Funds
  5. Save Tax by contributing to Public Provident Fund.
  6. Save Tax by taking life insurance policies
  7. Fixed Deposit can be opted to save tax
  8. Save Tax by take health Insurance policies
  9. Leave Travel Assistance shall  be preferred.
  10. Watch out for Sections 80D in details
I will explain in detail the above options in my next posts.

1 comment:

  1. really fantastic information thanks to shared this tax saving tips income tax saving tips