It’s the time of the year again! Everyone will get busy with finding ways to save tax. Upwardly presents to you 19 ways to save tax in 2019.
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Life insurance premium paid in the year can be claimed for deduction. Premium paid for yourself, your spouse or your children can be claimed under 80 C. Also, you can have more than one life insurance policy and premium paid for all are eligible for deduction.
The premium paid for health insurance for self, spouse and children all qualify for deduction under section 80D. The deduction allowed in the category is Rs 25000 and Rs 30000 for youngsters and senior citizens respectively.
Preventive Health Check- Up
Within the limit of insurance, the person is eligible for a tax reduction for preventive health checkups up to Rs 5,000. Also, if the person is paying for parents/guardians health insurance then an additional Rs 25,000 (Rs 30,000 in case of senior citizens) can be claimed. And within the limit, the person is also eligible for Rs 5,000 for preventive health checkups.
Medical expenses of disabled individual and parent
If the individual or the dependent of the individual is disabled then under Section 80DD a maximum deduction up to Rs 1,25,000 is allowed to take care of the disabled person.
Provident fund (PF)
You can invest in the Employees Provident Fund (EPF) or Public Provident Fund (PPF) or both. You can also invest in Voluntary Provident Fund (VPF).
Employee Provident Fund (EPF): EPF is a deduction that the employer makes from your salary, this contribution forms part of 80 C.
Public Provident Fund (PPF): PPF is a small savings scheme offered by banks. Investments made in PPF have a lock-in of 15 years and give a fixed return according to the interest rate published by the Ministry of Finance every quarter. The interest rate on PPF stands at 8% effective from 1st October 2018 as per the latest govt. notification.