What are the different investment options or methods available to save income tax by a salaried employee.
I am working in a company and a big amount of TDS is deducted from my salary.
What are the different investment options available to save TDS and overall income tax?
I am married and have 1 kid going to school. I am not looking for any long term investment, as I already have a house and vehicle.
Do we get exemption on purchase of vehicle?
In India only salaried employee are paying highest income tax.
There are 2 things, one is tax avoidance and tax planning.
It is always suggested to follow tax planning instead of tax avoidance to have a secured and peaceful life.
Good that you are asking about saving income tax, instead of avoiding income tax.
As an employee you have different options to save income tax.
For example, HRA, Conveyance, Transportation allowance, Child education allowance are already allowed as deduction from salary.
You also have option to invest in some schemes to avail benefits under section 80C of income tax.
You can submit investment proofs to you employer, employer will calculate taxable income and income tax accordingly.
If your house is on loan, you will get benefit of deduction under section 80C and again interest portion you can claim as loss from house property.
You will not get any benefit on purchase of a car.
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