Save Tax The Smart Way

Are you in a hurry to pay your tax, but, don’t know which schemes to apply for to get the rebate? Confused with all the tax jargon being used everywhere by experts? Any person who has to pay tax must be having sleepless nights about 31st March, the deadline for paying their tax. It can be really tiring with all the information without understanding the basics. Tax is a charge levied by the government, on a person, an activity, a commodity or amount of money. Income tax is the charge put on the income of a person. The government, however, also provides means by which an individual can save money on the tax that they have to pay. Taxes are means of collecting money from the people for the development of the country’s defenses and infrastructure. Taxes saving options, on the other hand are means to generate funds.

Any person who has to pay tax needs to know the amount of tax that one is liable to pay to the government. This information is provided by the Income Tax Slab releases by the government every financial year. The income tax slab gives the percentage of tax that a person, of different age groups and sex, has to pay to the government. For every income group, there is a different taxation percentage. There are different tax slabs for men, women and senior citizens. The income tax slab starts at Rs. 2.2 lakh to Rs. 5 lakh. 

There are various schemes, by means of which an individual can save income tax. These schemes have been listed under various sections of the Income Tax Act, 1961. The most popular schemes have been listed Under Section 80C of the Act. The various tools listed under this section are life insurance policies, National Saving Certificates, Senior Citizens Saving Schemes, and Public Provident Fund and so on. All these tools provide means by which a person can save money up to Rs. 41715 on their income tax. These schemes are not only just a means to save tax, but, are also a means to create funds for the individual. A person can invest in any of these schemes up to a maximum limit of Rs. 1 lakh. All these schemes are subject to this limit.

There are many people who give advice on means of saving tax and how to apply for it. However, depending on the Income bracket, age, funds and the risk capability of the individual, there is the possibility that each scheme may provide different returns. One can find information about these schemes and do much more using the internet.