The Indian Income Tax Act allows for certain deductions which can be claimed to save tax at the time of filing of Income Tax Return by all classes of Taxpayers (i.e. Salaried Individuals, Professionals, businessman etc). These deductions which help in saving tax are only available if the taxpayer has done proper tax planning during the year. If an Individual has done proper Tax Planning to save tax, such deductions would be subtracted from the gross total income and income tax would be levied on the balance income as per the income tax slabs in force.
The Most Popular Ways Of Tax Planning Which Help A Taxpayer To Save Tax Legally Are As Follows
- Save Tax under Section 80C, Section 80CCC, Section 80CCD.
- Save Tax under Section 80D, Section 80DD, Section 80DDB.
- Tax Planning through Home Loan.
- Save Tax through Education Loan u/s 80E.
- Tax Planning under Section 80CCG: RGESS.
- Income Tax Deductions for Donations u/s 80G.
- Long Term Capital Gains from the Sale of Equity Shares.