Struggling from high taxes, Use these ways to save them

The financial year 2022-23 is about to end, and the responsibility of paying income tax on the income earned during this year is very close… Even though the income tax return for this year will have to be filed by July, 2023, the income tax will be due by 31 It would be better to repay before March, otherwise you will have to pay penalty and interest… By the way, we have already reminded you that in which items you should invest to save income tax, but today we will tell you Here are 10 such tips, with the help of which you can save a lot of tax.

The first way is NPS.

NPS i.e. National Pension Scheme is our top pick for tax saving this year as debt investment is expected to give higher returns than equity in the year 2023. In this, tax is saved in three ways. Firstly, contribution up to Rs 1.5 lakh can be claimed as deduction under section 80C. Second, there is a provision for additional deduction of Rs 50,000 under section 80CCD(1b). Third, if the company puts up to 10% of your basic salary in NPS, then that amount will not be taxable.

The regulation of the National Pension Scheme is done by the Pension Fund Regulatory and Development Authority. You have to invest in this scheme till the age of 60 years. At the age of 60 years, you will have to buy an annuity from an insurance company registered with PFRDA from 40 percent of the accumulated amount. You will have the option to withdraw 40% of the deposit amount. You will not have to pay tax on this.

You can also withdraw the remaining 20 percent, but you will have to pay tax on it according to your income tax slab. If you want, you can also buy annuity from this 20 percent share. There is no tax on the amount invested under NPS, but the annual income you earn from it is taxed.

Unit Linked Investment Plan is another way to save tax.

Unit Linked Investment Plan ie ULIP is such an investment, in which the benefit of insurance is also available. In this, you get tax exemption up to Rs 1.5 lakh under 80C. However, if the annual premium under a ULIP exceeds Rs 2.5 lakh, the excess premium will be taxed. This will be the same as the long term capital gain of more than Rs 1 lakh, which is taxed at 10 per cent. It is convenient to switch between debt and equity as there is no tax on it. The returns are also tax free. In this money is not locked till retirement.

Rebate on interest paid on home loan or house rent allowance.

Many employed people buy a house, then take a home loan, whose EMI has to be paid continuously. Tax exemption can be availed on the amount of up to Rs 2,00,000 annually out of the amount of interest given to the bank in that EMI. That means out of the interest you are paying in your total EMI, the amount of Rs 2,00,000 is tax free. Apart from this, people who have not been able to buy a house at present, and live in a rented house, they can also get income tax exemption by giving a house rent receipt, you can read the method of calculating it here.

Exemption is also available on 80DD.

God forbid, there is a disabled person among your dependents, but if so, then you can get income tax exemption on the expenses incurred on them. In these cases, if the disability is 40 to 80 per cent, then a deduction of up to Rs 75,000 can be availed, and if the disability is more than 80 per cent, then on the amount of expenditure incurred on it, Rs 1,25,000 Discounts can be found.