How to Save Income Tax

• Looking for more information on how to save income tax? Tax planning is a great way to start for availing tax benefits and savings. If you are looking to maximize your savings, then you need to keep an account of your incomes & expenditures and prepare all your saving plans in advance. To plan your savings, a key factor that is crucial to your tax saving plan is the income earned by the individual per annum as well as the income tax laws governing the country. Since the rates differ for each income bracket, the total tax an individual needs to pay depends on his annual income, but there are many ways to save your tax money.

• To accrue maximum saving benefits, an individual needs to invest his earnings wisely in the various saving schemes. Various sections of the income tax act provides certain heads under which an investment can clearly save you a lot of money and a future investment is created alongside. Channelizing your funds into diverse investment plans is the smartest way to maximize benefits. Tax deductions - which are granted by the government helps save the tax on premium paid as well as a tax free maturity as well. Investing in a pension plan for retirement is a very good option since it contributes to your family's future as well. Thus, planning your saving options in advance helps you take full advantage of the various tax saving plans available so as to get maximum tax benefits. You can have a minimum tax liability if you plan well and in turn and will be able to save for the future as well.

• Getting a good life insurance policy is also a good tax saving plan since under the Income Tax Act 1961, by investing in a life insurance plan, an individual is allowed to write off the premiums that one has to pay while calculating his taxable income(subject to conditions of Income Tax Act 1961).

• Thus investing in a life insurance policy is a great way to ensure a bright future for your family as well as accumulating a lot of income tax savings, as compared to if you are not investing in such instruments.

• Apart from investing in a life insurance policy, a health insurance is a great investment to make. It is a sensible tax saving option which helps you increase your income tax savings and live a confident life without any fear of any ailments of illnesses.

• A Life insurance plan is a sensible investment that offers its rewards in more ways than one. Being a viable Best Tax Saving Plan option, a life insurance plan yields great returns as well as helps your income tax savings.

• Investing in your future, these insurance plans are great tax saving investments that give you more than just one benefit. So, it is advisable to choose your plan carefully and get the best plan for yourself with proper diversification with the investment instruments.

• Article Source: http://EzineArticles.com/6839656

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