5 Tax Tips for Salaried Individuals

The financial year 2018-19 is almost coming to an end. Therefore, it is important for the salaried individuals to save and plan their taxes accordingly. These taxpayers are in large numbers; hence, it’s crucial to plan the decision beforehand. Here are few tips from File My Return that provides the best use of tax exemptions, allowances, deductions, available under the Income Tax Act, 1961.

 Salaried Individuals worry the most! Why? Tune in to this blog and read further. Let’s study and analyse closely the salary structure to alleviate losses for a peaceful life ahead!

1. Analyse your salary slip closely.

As a regular corporate citizen, you need to pay the tax on your income. Although the HRA is levied from the taxes. However, it is only exempted when you have shown that you are living in a rented house and pay its rent on a monthly basis. Claim your benefits via supportive documents related to tax saving investments.

2. Medical Insurance Premium

Save those medical bill receipts so that you save taxes by the end of the year. Do you know that ₹15,000/- is non-taxable on medical expenses in the name of your spouse, parents, sibling, and children.

3. Have a look at Section 80

Section 80E is the interest paid on loan taken for education. It allows to deduct any interest that is paid for studying abroad. If you have any health insurance policy, that comes under the Section 80D, hence, you can avail the tax benefits if you file your ITR. There are a lot many sections that can help you in saving taxes. Know a detailed description in the investment declaration form that is given by your employer.

4. Agricultural Income is totally exempt from income tax according to Section 10 of Part III of the Act.

5. Dividends received upon investing in long term equity shares or mutual funds. Long term means a period in excess of 12 months.

Knowing your salary slip is the primary step to be added in your checklist! Go through the following details: earnings, allowances, and deductions. Effective planning and saving prior will exempt you from all those unnecessary taxes! For any queries, you may contact us:

How to avoid TDS? | File My Return

We understand that a lot of future planning and saving some investments is necessary for convenience. Therefore, it is necessary to manage your taxes so that you are able to evaluate your total income at the end of the year (annually).

Tax is cut from all your sources of income. But did you know, you can ignore it too? Know how? File my Returns, is a Tax FillingOnline platform which explains vividly how can save yourself from the tax deduction. Let’s look at the spotlight and avoid paying unnecessary TDS.

Ever wondered what really is TDS?

It is a procedure where the government (tax department) plays its role by collecting tax from our sources of income. Let’s take a deep look, TDS is deducted from salary, commission, brokerage, rent, royalty fees, interest, etc.

1. Split your FD across bank accounts

When you’ve already split your fixed deposits across various bank accounts. In order to get exempted from TDS, you need to show your overall interest rate as ten thousand only. It will help you in reducing your tax liabilities.

2. Submit the forms

The forms namely, 15G and 15H are certain types of declaration forms. 15G represents the people who are below sixty years, and 15H represents for all the senior citizens who are above sixty years.

For example- On the interest of 5 lakhs from fixed deposits, TDS would be 50,000 (quoting 10% as the interest). If you are able to submit the 15G form, then you will be glad to know that there will be no TDS.

Pay close attention when you make investments and do the calculations for the year. Try avoiding the taxes, wherever you can. For any other guidance, you may get in touch with us- https://www.filemyreturn.co.in/.