The entire process of income tax can be arduous and overwhelming at times. Owing to our busy schedules and lack of legal knowledge, it can get more hectic than it is supposed to be. So where do you find aid from? And how do you cross the gushing sea of taxation by complying with legal norms yet saving some for your pocket?
It is a question asked by every earning professional, either in private, public, or business. We all want to be relieved from the recurring headload and still get it done smoothly, error-free, and, of course, guilt-free. rightly said?
The answer to all these lingering questions of yours is nothing but an income tax consultant. Why? Because a master of taxation can only guide you to cross the sea of taxation just like a master sailor will. An income tax consultant is a master you need right now. All you have to do is leverage his services for the best potential outcomes.
We all want to get tax deductions. But we often fail to do so owing to negligence on our part. Most citizens aren’t aware of what tax deductions they are liable to claim, and that is where they end up paying more than they are required to. This is where an income tax consultant can help you by informing you about current taxation rules and where you can get and claim deductions.
Taxation can also fall under the purview of a tax auditor where the professional ensures the compliance of businesses, corporations, or firms with the statutory guidelines. An internal auditor in India will put forth the basic necessities that companies should check-list in order to be compliant and discrepancy-free.
Here in this blog, we shall discuss those areas—to be precise, investments—that you can claim as income tax deductions. There are certain investments that you can leverage and come out victorious in the eyes of the government and yet save some for your pocket!
1. LIC Premium: The person will be allowed to claim a deduction of up to $150,000 if they purchase life insurance for themselves or their spouse.
2. Repayment of House Loan: If a person took out a home loan, he or she may be able to deduct up to Rs. 1,50,000 from the principal amount paid over the course of the year.
3. Health insurance premium: Self, spouse, or kid health insurance premiums paid. The maximum tax deduction for the cost of your family's and your own health insurance is Rs. 25,000. Senior citizens are eligible for a tax reduction on premiums up to Rs. 50,000.
4. Children’s tuition fees: Only the amount of tuition fees paid for two children will be eligible for a deduction. In India, tuition must be paid to a university, college, or other educational institution for full-time study. This deduction cannot be used to pay for your own or your spouse's college expenses.
5. Interest Paid on Electric Vehicle Loan: Electric vehicles are made cheaper by Section 80EEB's provision of an IT deduction of Rs 1.5 L on interest paid on loans obtained to acquire them. Along with it, the GST was reduced from 12 to 5 per cent. The financial institution has approved the loan during the time frame starting on April 1, 2019, and ending on March 31, 2023.
6. Home Loan Interest Paid: A further exemption of Rs. 1,50,000 is provided under Section 80EEA for the payment of interest on home loans. The financial institution has authorised the loan for the time frame that starts on April 1st, 2019, and ends on March 31st, 2021. The maximum loan amount approved for the purchase of a residential home is 35 lakh rupees. Residential real estate is not worth more than Rs. 45 lakh.
Conclusion
The aforementioned investments are the key areas that you can claim for tax deductions. To understand more in detail and to learn more about such investments, you must hire an income tax consultant. An internal auditor in India also strives to serve you the best in fulfilling your company’s objectives.
Paying taxes need not be cumbersome. They can be done fluidly and smoothly with the help of the right guidance. Find yourself a perfect professional and you are all set to go.
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