Tips to Save Tax for Salaried Employees | PNB MetLife Insurance

Tax Planning Tips for Salaried Employees

PNB MetLife India 03-01-2017 12:31:44 PM
Tax Planning Tips for Salaried Employees

No one wants to hand over money that they’ve earned over to anyone else. You deserve what you’ve worked for. Here are some easy ways to make sure that your salary stays with you and doesn’t get turned over as tax to the government.

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  1. Take a good look at Section 80C: This section gives enough leeway to employees to reduce their tax liability. By taking a good long look at this section, individuals can formulate ways to increase take-home salary and legally reduce taxed amount.
  2. Make proper investment plans: By investing on Life Insurance plans, savings plans and Public Provident Funds (PPFs) you can claim tax exemptions on legal grounds. Investment plans also depend on personal financial goals, risk profile, and personal income. However, you should consult a financial planner on this matter before you make a final decision yourself. Tools such as the Life Insurance Calculators should come in handy here.
  3. Make the most of secondary options: Options such as tax-savings mutual funds and ULIPs are excellent ways of saving tax, if you are the risk taking type. If not, PPFs and NSCs are also viable options. Even pension plans qualify for tax exemptions. 
  4. Take a Home Loan – By taking a Home Loan you can claim tax exemption by providing documents of proof regarding principle repayment of the loan.

Also read: Tax saving investments can help achieve goals