How do you Review Employee IT-declarations?

IT declaration

Filing the Income Tax Returns with proper planning is very important. Income Tax laws appear so complex that people are scared to deal with their taxes. Planning the taxes properly can help to save a lot of money. There are also chances that employers drain plenty of money as TDS from the employee’s salary. Better not to fall into that category.

Claiming tax benefits is simpler than commonly perceived. Many strategies, often unknown, can unknowingly aid in tax savings. By, just putting in a little effort, one can save more tax than imagined. Choosing practical and legal tax declaration schemes anyone can incur several regular expenses which makes an employee eligible for tax benefits.

Section 80C

Section 80C of the Income Tax Act allows the exemption of investment or spending from income tax. But better to maximize the declarations by making some common investments.

  • Your Provident Fund contribution
  • The principal component of your housing loan from prescribed institutions
  • You can invest Rs 500 to Rs 1.5 lakh every year in a Public Provident Fund (PPF) account
  • Tuition fees for two children
  • Life insurance premiums for oneself, spouse, and kids.
  • Contribution to Unit-linked Insurance Plan for oneself, spouse, and kids.
  • Invest in National Declarations Certificates (NSC) schemes (through post offices)
  • A 5-year term deposit with a bank under a notified scheme or a post office.
  • You can invest up to Rs 1.5 lakh a year in Sukanya Samriddhi Account in the name of your daughter (limited to two children)

If the basic salary is over 1 lakh a month, most of the 80C limit will be used up by Provident Fund(PF) contribution alone, if you have opted to contribute to PF.

Start using these tax declaration methods today and optimize the declarations.

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