Every year, taxpayers are concerned about paying a hefty amount in the form of income tax. They are helpless to pay large amounts because of no financial planning. You can claim different deductions during IT filing as per-determined by Income Tax Act. You can save income tax with accurate financial planning. We have the 5 most ideal suggestions for an income tax saving plan.
Apply for home loans
Loans are not recommended when you want robust financial planning, but a home loan is one of the best options for saving your finances. Home loan tax planning is helpful because taxpayers can claim deduction more than one section of the Income Tax Act. Moreover, Bima Plus Life Insurance Advisor in Noida Sector 10 will suggest your best scheme. You have applied for a home loan; you can claim a tax deduction on the lump sum amount as 80C section of Income Tax. Moreover, users can also claim deductions on home loans' interest as per income tax section 24.
Invest in financial market elements
There are various financial instruments such as Mutual Funds, SIP, National Pension Scheme, and ULIPs. Income Tax act of 1961 has excluded taxation for specific earnings using market-linked tools such as ULIPs, Equity-linked saving schemes, NPS, etc.
Buy an insurance policy.
The best way to save your tax is to buy a life insurance policy. If you don't know how to invest in insurance, you can consult experts for that. Bima plus has a dedicated team of Life Insurance Advisor in Noida Sector 21 to assist you in making the right decision in investing in life insurance. Under the Income Tax 80C section, people can rebate on payouts and premium payment of term and life insurance policy. Your life insurance premium is tax-free up to 1.5 Lakhs. Under section 10(D), the income tax Act permits any income through a life insurance policy is excluded from taxation.
Get child insurance (education) for your kid.
Parents can choose a child plan for their child's education. Parents can select premium duration yearly or monthly as per their financial capacity. The child plan's maturity would end at the time of college-going year of age like 17 or 18 years of your kids. The child insurance plan will help you finance your child's education at the time of college admission. Several child plans such as conventional life insurance policy, ULIPs, and other insurance instruments provide the same tax advantage. Communicate with Life Insurance Advisor in Noida Sector 2 through Bima Plus to get the best insurance policy for your child.