Finance & Loans

Explore Options Like Investment Plans, Budget Creation And More

 This is truly the era of consumerism. Everyday, we’re surrounded by products and services that tempt us to open our wallets just a little more and stay on the continuous cycle of spending. But to carry on our goal of providing for our wants and needs, we need to find ways to cut back somewhere and build a nest egg that will sustain and grow our wealth in the long run. There are a number of ways you can start this process, chief among which include ways to save your income tax.

How can you save income tax on salary in India?

There are a number of ways you can use to save income tax on your salary in India. These include a host of methods that can be utilized in your path to re-route the money that would go towards paying your income tax. Instead, these methods will help you invest in the future of you and your loved ones, so you can ensure fulfillment of your personal goals for years to come. Some of them include:

·       Getting a home loan

When you apply for a home loan, you can get dual benefits of owning real estate and lower tax liability. Buying real estate has always been considered a reliable and tangible investment option. This process becomes even easier as there are several government schemes that will help you apply for affordable home loans in India.

It is important to understand the section under which you will be applying for the home loan. If you want to enjoy the income tax-saving tips, you can consider applying for a home loan under Section 80C. Furthermore, it also plays an important role in reducing the unwanted tax burden.      

·       Getting a health insurance policy

One of the best ways to save income tax is to get a health insurance policy. This won’t just provide you financial assistance in your times of need; it will also reduce your burden of paying tax.

You can browse a vast range of health insurance policies available in the market today which cover comprehensive treatment options, emergency ambulance services, consultations and much more. Section 80(D) of the Income Tax Act empowers you to claim deductions for premiums paid for health insurance policies. These include those policies bought for yourself, as well as those purchased for your spouse, children and dependent parents.

·       Investing in tax-saving instruments

The government encourages healthy saving habits, which is why it grants a provision of investing some amount of your income on a number of tax-saving options. Some of these include:

1.     Public Provident Fund

2.     National Pension Scheme

3.     Premium Paid for Life Insurance policy

4.     National Savings Certificate

5.     Equity Linked Savings Scheme

·       Claiming Expenses:

There are a number of expenses that you can claim deductions for. We’ve covered a few earlier like the premiums paid for health or life insurance policies. In addition to these you can also claim deductions for expenses made towards the following:

  Children’s education

  Expenses made for treatment of disabled dependents

  Money spent in paying house rent

  Donations made to charity

  Donations made to a political party

Can you make the money work for you?

Now that you know the ways you can save money on income tax, you can benefit from making your      money work for you. Making your money work for you means taking charge of your finances and creating opportunities to build financial security and stability. There are a number of ways to get started on this rewarding journey. The beginning will of course begin with getting a better understanding of your current finances and how they are being spent. From here, these are a few ways you can start making your money work for your needs:         

·       Create a budget

There’s no better way to make your money for you than to create a budget. Sticking to your monthly savings plan can play an important role in saving money in the long run. As per the general schedule, you need to save more than you spend.

By keeping a check on your spending patterns, you can point out when and where you are spending your money on unneeded things. By creating a budget and sticking to it, you become more in control of your money.      

·       Invest

There is no better way to make the most of your money than by investing. Your investments play a large role in satisfying your long-term goals    

There are a number of arenas where you can invest. The stock market is one of them. But remember to stay vigilant with your stock market investments, so you can yield the best results.      Real estate is one of the best places to invest money. You can also consider generating a specific high-yielding savings account to receive the benefits.

Another great platform for generating wealth is Unit Linked Insurance plans (ULIPs). These plans offer you a double benefit of insurance as well as wealth creation.     

·       Have passive sources of income

Passive income sources can be one of the best ways to achieve financial stability and freedom. You can choose freelancing, part-time marketing and more, and it is one of the best ways to generate monthly income and get investments.

For a deeper understanding of your personal needs, goals and methods that would work best for you, get in touch with our experts at Edelweiss Tokio Life Insurance.  They can guide you on how to make the right investments from where you can yield maximum results.

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