Useful Information Regarding First Time Tax Payers

first-time-taxpayers

As per acts and regulation of government of India evasion in tax payment is crime and any individual who will do this will face legal action according to law. On the other hand if someone will invest his/her amount as per provision then it will allow them to save maximum number of tax amount in legal way with ease. To do so, it is quite necessary to follow some valuable tip and you may save tax if your income is less than INR 10 lakhs.


Exemption under section 87A

According to rules of IT act section 87A, individual may save up to INR 2500. This exemption will be applicable if deduction under section 80 is less than INR 350000 in a financial year.


Investment Under section 80C

All investment made under section 80C will get exemption in income tax payment. Individual may save up to INR 150000 in single financial year. As it is known that all payment regarding lic premium payment, amount repayment under home loan, any investment made under NSC, Tax save FD, PPF, senior citizen saving scheme, Sukanya Samriddhi Scheme, NPS, ELSS andother saving schemes.


Benefits under donation

If someone will donate specific amount as per their income that that donation comes under section 80C then individual will be eligible for exemption in tax payment with ease.


Buy Health insurance Policy

Any premium paid under health insurance premium then it will come under section 80C. Under this provision individual may save up to INR 25000.


Repayment of Home Loan Repayment

All premiums will be paid for home loan comes under section 24, provided that property is used for residential purpose.


Investment under NPS

If someone is investing amount under national pension scheme the individual may get exemption up to INR 150000 in financial year and for extra exemption under section 80CCD(1B).