If you are a salaried person and pay income tax, then you can save it through some investments. If your salary is not paid by the company for conveyance charge, food coupon or any special allowance, then you can get it started. Along with this, investing in schemes like NPS will also help in savings.
To save tax, you have to start some allowance from your company. You can take reimbursement on the expenses for this. The cost of phone, newspaper and gadget etc. can be included in this. Apart from this, investment in NPS gets tax exemption under section 80CCD(2). With these decisions, you can get tax exemption of up to 60 thousand.
Tax saving by renting a house
If you live in a rented house and HRA is not a component of your salary then you will not be able to claim for tax exemption Here component means reimbursement. But if you get HRA reimbursement done by your company, then you can claim tax of Rs 5,000 each under section 80GG on rental basis. This will reduce your tax liability by up to Rs 12,500.
Discount on Insurance Premium
You get tax exemption even if you buy a health insurance plan. If the premium of the policy is Rs 25,000 then you can get tax exemption up to Rs 1,500. If your premium is less than this, then you can increase it up to Rs.25 thousand so that you can get more benefit of tax exemption.
Tax exemption on investing in NPS
If you get more money as special allowance, then you can get it reduced by talking to the company. You can take 12 thousand rupees telephone allowance and 12 thousand rupees newspaper instead of this from your company. These taxes will come under the purview of tax free expenditure on depositing the bill of their expenditure. Apart from this, you can pay 10% of your basic salary You can deposit in National Pension Scheme (NPS). Investments in NPS also get tax exemption.