I’m working in a private organisation and my monthly salary is Rs.125000/. I have only invested in PPF and I'm paying huge tax. Please suggest any investment where I can invest and save tax.
Ans: Hi Kalim, There are multiple tax saving options you can use. Following are few of the popular tax saving options available:
You can save tax up to 1.5 lakhs under section 80C by investing in PF, PPF, ELSS, ULIP, Insurance, home loan principal repayment, etc
Investing in NPS helps you to save further of 50k under section 80CCD which is over and above 1.5 lakhs under section 80C.
Section 80D provides income tax deduction on medical insurance premium paid for self and family. You can claim up to 25,000 for premium paid for self, spouse and kids. In case of senior citizens the limit is 50k.
If you have a home loan, you can also claim tax deduction on the interest paid towards home loan. You can claim deduction for up to 2 lakhs for the interest paid.
Further you can claim the contributions made to certain relief funds and charitable institutions under section 80G.