How can I reduce my taxable income?
12 Tips to Cut Your Tax Bill This YearTweak your W-4.
The W-4 is a form you give to your employer, instructing it on how much tax to withhold from each paycheck.
Stash money in your 401(k) …
Contribute to an IRA.
Save for college.
Fund your FSA.
Subsidize your Dependent Care FSA.
Rock your HSA.
See if you’re eligible for the Earned Income Tax Credit (EITC)More items…•.
What 80c covers in income tax?
Subsections of Section 80CTax saving sectionsEligible investments for tax exemptionsSection 80CInvestments in Provident Funds such as EPF, PPF, etc., payment made towards life insurance premiums, Equity Linked Saving Schemes, payment made towards the principal sum of a home loan, SSY, NSC, SCSS, etc.4 more rows
Can I invest more than 1.5 lakhs in 80c?
Although there is no restriction on the amount one can invest in it, investments up to Rs 1.5 lakh in a financial year is exempt under section 80C of the Income Tax Act.
Is RD covered under 80c?
The Post Office 5 year RD also comes under the tax exemption under section 80C up to Rs. … The interest is chargeable to tax as per tax slab and interest of more than Rs. 10,000 per annum is applicable to TDS of 10%.
How can I save my tax after 80c?
1) Tax saving with NPS under Section 80CCD (1B): Taxpayers can save additional tax by investing up to ₹ 50,000 in NPS. This is over and above the benefit, they can claim on contributions under Section 80c. They also have the option of utilizing NPS for the ₹ 1.5 lakh limit of Section 80c.
How much tax we can save under 80c?
I. The most popular avenue for tax-saving is section 80C of the Income Tax Act. Under Section 80C, an amount equal to the investment you make in specified instruments or expenses, up to a maximum of Rs 1.5 lakh in a financial year, reduces your gross total income (GTI) by the same amount.