Best Tax Planning Strategy for Salaried Individuals
Tax planning is an essential process for every salaried person to reduce their taxable income and maximize their savings. With proper tax planning, you can manage your income effectively and take advantage of various exemptions provided by the government. There are many provisions under the Income Tax Act, 1961 which are made to provide tax relief to salaried individuals. If you use them properly, your tax burden can be reduced and you can be more financially secure. First of all, it is important to understand what your total income is and how much tax is going to be levied on it. The government has created different sections for tax exemptions and deductions, using which you can reduce your tax. The most popular way to save tax is to invest under Section 80C. Under this section, you can avail a maximum deduction of up to Rs 1.5 lakh. This includes investments like PPF (Public Provident Fund), EPF (Employee Provident Fund), tax saving FD, life insurance premium, National Savings Certif...