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Q.

What are the best ways to reduce the amount of tax we pay ?

Tags: best ways, amount of tax
Asked by Jeffrey, 08 Feb '08 11:47 am
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Answers (81)

1.

Hai Jeffrey,
You can get tax exemption u/s 80C,80D,80DD,80G.

U/s 80C of IT Act, one can save upto 1,00,000/- by
-Payment of life insurance premium for self and dependents
- Contribution to employee provident fund (EPF)
- Repayment of principal amount on housing loan
-Payment of tuition fees for regular study undergoing by the children(available to Two children only)
-Investments in Public Provident Fund (PPF)
-Investments in National Savings Certificate (NSC) ...more
Answered by deleted, 13 Feb '08 12:59 pm

 
  
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2.

To reduce tax you can invest in tax saving instruments like PPF,LIC,NSC, Tax Saving bonds or tax saving mutual funds etc under section 80 C upto a maximum of Rs.1 lakh.
Answered by Abha Kapoor, 11 Feb '08 02:25 pm

 
  
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3.

The tax amout can be saved using the several avenues available under 80C. But the target should not be just 'Tax Saving' but should be 'Wealth creation', by investing in such avenues. The avenues available are,
1. Payment of life insurance premium
2. Contribution to employee provident fund (EPF)
3. Repayment of principal amount on housing loan
4. Payment of tuition fees
5. Investments in Public Provident Fund (PPF)
6. Investments in National Savings Certificate (NSC)
7. Investments in tax-saving fixed deposits
8. Investments in tax-saving mutual funds (ELSS)
9. Investments in Infrastructure Bonds
Answered by Rajesh Ramesh Hoskote, 11 Feb '08 04:28 pm

 
  
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4.

1. 80C
Qualifying products: NSC, notified bank deposits and post office time deposits, EPF and PPF, ELSS, life insurance plans, deferred pension plans
Mandatory requirements: Payment has to be made before 31 March 2008
Who can avail the deduction: Individuals and HUF (both resident and non-resident)
How much: Cannot exceed Rs 1 lakh.

2. 80CCC
Qualifying products: Pension plans of life insurers
Mandatory requirements: Payment has to be made before 31 March 2008
Who can avail the deduction: Individuals ...more
Answered by hitesh mohta, 15 Feb '08 09:49 pm

 
  
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5.

We can save the amount of tax by used section (From 80 C to 80 U ).the best way to reduce the amount of tax.
Answered by ashutosh gupta, 12 Feb '08 04:49 pm

 
  
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6.

Why r u worring about that, many more system can reduction of tax
You take LIC policies lakhs after lakhs
You've a children, school tution fee records
take house loans
Tax saving Bond
Mutual fund
Answered by Helen Vincent, 11 Feb '08 06:04 pm

 
  
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7.

You should ensure that your earnings are mostly in cash, just like next street shop fello. who doesn't diclare his real profit/income. Govr. is only taxing the saloried more and more and also pushing them into uesless savings like LIC, Small savings, etc.
Answered by prk reddy, 12 Feb '08 11:01 am

 
  
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8.

With proper tax planning you can reduce your tax liability; save more; invest better and become wealthier.

http://holisticinvestment.in/plan-your-taxes

Regards
Ramalingam K, MBA, CFP,
Director and Chief Financial Planner,
Holistic Investment Planners
Best Performing Financial Advisor Award Winners from CNBC TV18
www.holisticinvestment.in
Answered by RAMALINGAM, 07 Feb '13 03:19 pm

 
  
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9.

There are many way have through which we can reduce the amount of tax that we pay like by buying some insurance, bonds...etc. But which is best profitable? to know about these; visit http://www.probondins.com/ website before invest.

thanks
Source: http://www.probondins.com/
Answered by Probondins, 23 Sep '11 12:37 pm

 
  
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10.

Get a job which pays less.
Answered by V P, 21 Feb '08 09:14 pm

 
  
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