Here’s how you can save taxes under Section 80C

Saving taxes can be a challenge, especially, when you are new to tax slabs and unaware about how to save taxes. Mostly, first-time jobbers face difficulty in saving taxes as they are clueless about deductions.

Also, as you need to invest by March 31^st to save taxes, many rush to make investments, ending up committing financial mistakes. To avoid them, one should plan taxes in advance and look at various options to save taxes.

Here’s a guide on how you can save taxes

1. Claiming tax: The deduction can be claimed only from income in the financial year in which the investment and expenditure is made.


2. Section 80C of the Income Tax Act: This is the most commonly used option to save taxes. You can claim a maximum of Rs 1.5 lakh from investment or expenditure made. By claiming the amount, you reduce gross taxable income.


3. Saving instruments under Section 80C: There are multiple options to save tax under Section 80C such as PPF, ELSS, tax-saving FDs, ULIPs, etc.


4. Look beyond Section 80C: There are other ways to save taxes as well. For instance, you can save tax under Section 80D via health insurance, deduction of rent paid under Section 80GG, and more.