All of us work hard to fill the pockets and make our bank accounts fat. Nobody wants to splurge the hard earned money without anything in return. Even the most skilled person fears this one word which can make them shed some of their fortunes, which is “tax”. But, saving it is not as tuff as it seems as some in-depth knowledge on how to invest the money can bring you out of the trauma.
- Indulge into some distance learning programme:
Never bring numeric factor of age in between your learning. An education loan is not only away from tax hassles, but it will also boost up your levels of education.
- Do keep shares or equity mutual funds for a year and the sell:
Your stocks equity mutual funds become totally tax free after one year of time. So, after keeping them for a year, you can own the profit and investment both without any force deductions.
- Pay rent to your parents if you live together:
Living in a rented place, automatically exempts you from paying tax with the help of House Rent Allowance (HRA). So, even if you are living with your guardians or parents, you can choose to pay them rent and treat yourself with HRA.
- Travel often with business and personal purposes:
Travelling is always fun and if it can help you in saving tax, then you need nothing else. As a business owner, you can show your travel expenses as business expense and the rest of the profits are yours. Even the salaried people can use Leave Travel Allowance for their splurging on travel and retain some taxable money.
- Make your investments in Equity-Linked Saving Scheme Funds:
ELSS can be your saviour in an effective way as it has 3 years of lock-in time and no need of recurring payments. It also gives 18.26% rate of return.
