How to save income tax in India in 2019?

Honestly, aside from the most common ones, there are many small ways how you can save income tax in India. I think, if you’re serious about cutting back on your income tax amount the right and efficient way, you should definitely hire a good professional instead of DIY. Because even a minor mistake in your understanding and calculating tax can get you in trouble. And that’s not what you want!

But that being said, here are some of the common ways to save income tax in India in 2019:

(Courtesy: India.com)

(i) Section 80C

Say you have invested Rs 1 lakh in a financial instrument. Under Section 80C, an equal amount of up to Rs 1.5 lakh will be taken off your taxable income. So, if your total income is Rs 10,00,000, in this example, you will have to pay the income tax on just Rs 9,00,000. Eligible investments include PPF, EPF, NSC, ELSS, and more. For more information on this, please go here.

(ii) Home Loan

There are a few sections that help you save income tax on home loans. Under section 80EE, the first-time buyers can enjoy a benefit on interest in the home loan of up to Rs 50,000. Under section 80C, you can avail a deduction of up to Rs 1,50,000 in the principal amount repaid in the current financial year. For more on tax benefits on Home Loan, go here.

(iii) Medical Insurance

Under section 80D, you can save up to Rs 15,000 with medical insurance of yourself, partner and underage son/daughter. In addition, you can avail Rs 20,000 deduction with medical insurance of parents above the age of 65.

(iv) The maturity of Life Insurance

If you’re receiving any proceeds upon maturity of an insurance policy, that amount will be exempted from taxable income, under Finance Act 2003, provided if the premium paid did not exceed 20 percent of the sum insured.

(v) Long-term capital gains

All profits from your stocks and mutual funds will be 100 percent non-taxable, provided you hold the asset for more than one year. (See, it pays to be an investor over a trader ;))

(vi) Income from agriculture land

All your income generated from Agriculture land is completely tax-free. This includes many scopes, like income from rent of the land, income from products cultivated on the land, and income from a farm building.

(Courtesy: Jagran

Also Read :- What are some income tax terms that everyone must know?

(vii) Saving Account

Yes, the interest income on your savings account is exempted from any tax. But then, of course, there’s a limitation. Your interest income is exempted only if it doesn’t exceed Rs 10,000. If the amount is, say, Rs 13,000, Rs 10,000 will be exempted—the remaining Rs 3,000 will be taxed.

These are 7 ways how you can save income tax in India in 2019. Again, there are many other ways. So, it’s always a good idea to contact your accountant or someone more qualified to help you save on tax.