Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term

Protect Your family’s financial future with Kotak e-Term. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

Top 8 Tax-Saving Methods in India- Budget Planning

Curious about tax saving instruments other than 80c? Here are top 8 Tax saving methods which will help you save tax. Click here on Kotak Life to read these Tax saving Instruments!

  • Jun 20, 2019
  • 3,765 Views

It is your civic duty to pay your taxes on time. However, taxes have a huge impact on your pockets, as they reduce your earnings. As an informed individual, your aim is to reduce your tax liability. You are always looking to learn different ways on how to save tax. A healthy budget will ensure that you remain financially responsible and always make well- informed decisions. If you do not plan well, you will not be able to saves tax. Hence, it is important to be aware of the different tax saving methods in India.

Tax saving methods

Listed below are some common tax-saving options available for individuals in India to help save tax as per the Income Tax Act, 1961.

1. Home loan repayment

If you have a home loan, the Equated Monthly Installments (EMIs) will help reduce the burden of taxes. You will be able to claim a deduction of the interest component and principal amount of the installment. If you are repaying the home loan for your first house, you can save a higher amount of tax. The deductions will be available under Section 24, Section 80C, and Section 80EE.

2. Term insurance

A term insurance plan is one of the best tax-saving instruments. You can claim a maximum tax deduction of INR 1.5 lakh under Section 80C on the premium amount paid for term insurance. Investing in a term insurance plan is one of the best tax-saving tips, as the death benefit is also tax-free according to Section 10 (10D).

3. Rent paid

According to Section 80GG of the Income Tax Act, there is a deduction on rent paid and it is covered under ‘House Rent Allowance’.

4. Employee Provident Fund (EPF)

Investing in an EPF can help in tax saving. EPF is the amount contributed by you in your Provident Fund (PF) or EPF account. It can be claimed as a Section 80C. The interest, as well as, the maturity amount is exempt from tax if you have completed five years in the company.

5. National Pension Scheme (NPS)

NPS is a low-risk and highly secure investment option. The investment is eligible for a for income tax deduction under Section 80C.

6. Sukanya Samriddhi Scheme

This scheme is available only for parents or guardians of a girl child and it offers a higher return as compared to a PF or Public Provident Fund (PPF).

7. Donations

Charitable donations will make you eligible for tax exemption up to an amount of INR 2,000 under Section 80G.

8. Unit-Linked Insurance Plans (ULIPs)

ULIPs are one of the most preferred tax saving instruments in the country. If you have excess cash, you could invest it in ULIPs. If the premium paid is below 10% of the sum assured, you can avail of tax benefits. Moreover, the returns earned while investing in ULIPs are also tax-free.

Consider these tax-saving options to reduce the amount of tax payable by you. Do not make an investment keeping the tax benefit in mind, consider your long- term goals, risk, and return before you make a call. It is important to make a well- informed decision to enhance the returns and make the most of tax benefits.

Read Here for More Related Articles:

Download Brochure

Features

  • Increasing Life Cover*
  • Guaranteed^ Maturity Benefits
  • Enhanced Protection Through Riders
  • Tax Benefits
  • Dual Benefits: Guaranteed^Maturity + Death benefits

Ref. No. KLI/22-23/E-BB/999

T&C

Download Brochure

Features

  • Enhanced Protection Through Riders
  • Life Cover
  • Tax Savings
  • Multiple Premium Payment Terms
  • Guaranteed @ Loyalty Addion
  • Accrued Guaranteed @ Additions

Ref. No. KLI/22-23/E-BB/490

T&C

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Money Saving Tips for Single Women

How to Check Income Tax Returns Status Onine?

Investment Proofs You Need Submit To Lower TDS Cut From Your Salary

What are Deferred Savings Plans?

Section 80E: Tax Exemption on Interest on Education Loan

प्रधानमंत्री सुरक्षा बीमा योजना

How Do Assured Savings Plans Work and Why You Should Consider One?

हाउस रेंट अलाउंस क्या है और इसके छूट की गणना कैसे की जाती है?

How To Save Tax Better with 80C

What are Direct Taxes? How to Avoid being Overtaxed?

Received an Income Tax Notice? Your Guide to Understanding Intimations under Section 143 (1)

What is TDS (Tax Collected at Source)? A comprehensive guide

How To Save Tax Using Life Insurance?

How to Pay Advance Tax Online in India

Personal Finance - How to Deal with Emergencies When Preparing Finances

Tax Saving Tips: Best Ways to Save Income Tax for 2021

Saving Income tax in 2017 - 18

What is HRA (House Rent Allowance) and How is HRA Exemption Calculated?

धारा 80सी आयकर अधिनियम, 1961

Guide for Tax Calculation on your Salary

What is TDS Refund Process?

Tax Saving Guide for 2019-20

How to create wealth through a savings plan?

How can I get Form 16B from traces?

धारा 80डी आयकर अधिनियम, 1961

Income Tax Deductions for Disabled Persons Under Section 80U

Income Tax Deduction Under Section 80CCC In India

आयकर स्लैब 2021-2022

Tax Deductions You MUST Know

12 Tax Changes in Budget 2022 that May Impact Your Personal Financial Planning

How can NRIs prevent double taxation in India?

Pradhan Mantri Suraksha Bima Yojana

What is the difference between TDS and TCS?

Income Tax Exemption for Physically Handicapped Dependent

Income Tax Calculator: How Life Insurance Policies are Taxed? Explained

Financial Planning and Best investment options for Housewives

All about TDS on Salary under Section 192 – Kotak Life

Types of Riders in Insurance Policy

A Complete Guide for Filing ITR 3 Form

सुकन्या समृद्धि योजना (SSY) के कर लाभ क्या हैं?

Union Budget 2023 and Tax Exemptions on Life Insurance Premium Over ₹5 Lakhs

आयकर रिटर्न (आईटीआर) फॉर्म के प्रकार

How to Download Form 16?

What are the Different Types of Taxes in India?

What is Form 26AS - All You Need To Know

E-Filing of Income Tax Returns in India

TDS Due Dates of FY 2022-23 For Return Filing

5 Popular Tax-Saving Schemes in India

Difference between Section 80C, 80CCC, 80CCD & 80D

Plan your Daughter's Wedding With Best Monthly Savings Plan

9 Unusual Investments you Didn't Know for Saving Taxes in India

sections Under Section 80C of the Income Tax Act, 1961

All You Need to Know About Section 80C

Importance of Savings Plan You Need to Know

प्रत्यक्ष कर और अप्रत्यक्ष कर में क्या अंतर है?

Section 16 of the Income Tax Act (ITA), 1961

Easy ways to make personal savings plans

List of Important Income Tax FAQs

Difference Between Guaranteed and Assured Returns

Complete Savings Plan for Low Income Earners

What is a savings plan?

Tax Planning Tips for a Newly Married Couple

Things to Do After Filing Income Tax Returns

What To Do If Your TDS Is Not Deposited With The Government?

What is the Difference between Form 16 and Form 16A?

Save Income Tax by 31st March: Here Is a Checklist

What is Section 80C Deduction Limit?

How to Check Income Tax Refund Status Online in India

Tax Saving Options for Salaried Employees

How much gold can you keep at home? Limits and income tax rules explained

What Investment Options Come with Tax Incentives?

ITR 2 Form – Complete Guide

Financial Benefits and Government Schemes Every Woman in India Should Know

Should one prefer a guaranteed savings plan over monthly income schemes?

What is EEE in income tax? 5 tax-free investment options to become crorepat

What is Section 80C - Explained in Detail

Problems People Face with Tax Returns after a Job Change

What is Section 80CCC of the Income Tax Act 1961

What is Section 10D of the Income Tax Act?

All You Need To Know About Assured Savings Plan

9 Income Tax Myths That Could Cost You Money while Filing returns

What is Section 80C Deduction?

What is an Endowment Plan?

What is Salary Protection Insurance and Why You Need It

A Comprehensive Guide to Understand the ITR 7 Form

Budget 2019: Impact on the Common Man in India

What Is Advance Tax and How Is It Calculated?

What is TDS Exemption Limit?

Difference Between Gross Income & Total Income in Calculating Income Tax

What is Form 16A?

Tax Benefit of Investing in Term Plan

How to file Form 16 online?

Have You Considered Term Insurance a Part of Your Tax Planning?

Penalty For Late Filing TDS Return

What is ITR & How to File Income Tax Return?

3 Tips to Buy Guaranteed Savings Plan

What is the Last ITR Filing Date and Penalty for Late Filing of ITR?

All you need to know About Tax on Inheritance

How to Check Income Tax Refund Status Online in India

What is ITR 5 Form and How to File ITR 5?

A Guide to Life Insurance Policy’s Tax Benefits and Taxability

How to Get Form 16?

Difference Between Guaranteed Savings Plan and Guaranteed Income Plan

ITR-6: Guide to filing ITR-6 Form online

Tax Saving Options other than Section 80C

Basics of Guaranteed Savings Plan

How to Calculate returns on an assured savings plan?

Maximize Your Savings: Tax Tips for Salaries Above ₹20 Lakhs

Insurance and Endowment: Everything You Need to Know!

What is Tax Deduction at Source (TDS)?

How Inflation Affects Savings and Investment?

Best Savings plan for the middle class in India

When Should TDS be Deducted and Who is Liable to Deduct it?

Understanding Tax Exemptions in ULIP (Old and New)

What is the Percentage of Tax Deducted at Source (TDS)?

भारत में महिलाओं के लिए सरकारी योजना

Do Beneficiaries Pay Taxes on Life Insurance?

How to Save Tax on Salary Arrears?

Why PAN Card is Essential for Income Tax Filing?

How to Claim a Tax Refund?

Types of Income Tax Return (ITR) Forms

8 Things to Help You Select a Savings Investment plan

What is better - Guaranteed Savings Plan or Fixed Deposit?

Home Investment Plan to Buy Dream Home

How to save tax for salaried person?

How to File TDS Return?

Are Financial Planning and Tax Planning the Same Thing?

Union Budget 2023: Impact on Life Insurance

All about TDS Payment Online & Due Dates

Tax Benefits for Startups in India

What is the Maximum Maturity Benefit in Assured Savings Plans?

52 Weeks Savings Plan: Daily Savings Plans for a Better Tomorrow

Income Tax Exemption for Disabled

Post Office Savings Scheme - All You Need to Know

Everything You Need to Know About Tax Benefits of National Pension Scheme (NPS)

Tax-Free Income in India

Tax Benefits of ULIP Plans Available for NRIs

What is the Difference between Assessment Year (AY) and Financial Year (FY)?

What is the Difference Direct Tax and Indirect Tax

Personal Finance - Meaning, Importance, and Tips for Personal Finance

What is the TDS Rate on Salary?

Section 80C Deductions as per Income Tax Act, 1961

Who Should Invest In Savings Plan

Income Tax Slabs and Rates in India for FY 2021-22/AY 2022-23

How to File ITR Online

Challan 280 - How to Use Challan 280 to Pay Income Tax

How to View 26AS and Download Form 26AS Online?

Understand ITR4 Form: How to Fill, Structure & Determine Your Eligibility

Invest in Tax-Free Bonds: Understanding the Benefits and Who can Invest?

What is Tax Evasion, and What are the Penalties for Tax Evasion in India?

Income Tax Benefits for Doctors

Income Tax Deductions Under Section 80C

Tax Season is Coming- Know How to Save Tax

What is capital gains tax, and how it works?

What is TDS Slab?

Interest Imposed Under Sections 234A, 234B and 234C

Is PF Withdrawal Taxable for NRI?

Tax Saving for Self Employed in India

Tax-Savings Investments and Options in India

What is Form 16B?

Section 10 (10d) of Income Tax Act, 1961 on Payouts of Life Insurance Policy

How to E-Verify ITR: A Step-by-Step Guide to Electronically Verify your Income Tax Return

Investing Lump Sum Amount

Section 80D - Medical and Health Insurance Tax Benefits Under Section 80D

What is Rule 132 of Income Tax? How Does it Affect You?

How to e file ITR on Income Tax Government Portal

Income Tax Effects on Salary Deductions in the Union Budget 2023

How to File Form 16 for Salaried Employees?

How to File Income Tax Return for First Time Tax Payers

Why Tax Planning Should Be an All-year Round Activity

How to create a savings plan and make good investment choices

Key Changes of the Union Budget 2023 You Must Know

TDS rules on the sale of jointly owned property

Tax Planning and Tax Benefits of Life Insurance

What is Section 195 of the Income Tax Act? TDS on Non-Residents of India

Income Tax Filing For NRI in India

Form 16, Form 16A, and Form 16B?

How to File Income Tax Return without Form 16

Income Tax Deductions & Exemptions under Sections 80C, 80D & 80DDB for FY 2021-22 & 2022-23

Guaranteed Return Plans-Why is it a must for you?

Tax Rate Chart for FY 2022-2023: What is TDS Slab?

Saving Plans to Give Children a Debt-free College Education

Tax Structure in India

Should you prefer a Guaranteed Savings plan over monthly income schemes?

Impact of GST on Life Insurance in India

Section 80G of the Income Tax Act

How Should I Allocate A Monthly Savings Plan For Long-Term Benefits?

How to File Form 10E for Tax Relief on Salary Arrears?

How to View 26AS and Download Form 26AS Online

What is indirect tax and its types?

Why is Form 16 Important?

Why January Is an Important Month for Saving Tax?

Section 44AD of Income Tax Act for AY 2021-22

Income Tax Filing Using Multiple Form 16

How to File Income Tax Return - Everything You Need to Know

LTC Cash Voucher Scheme October 2020 – Everything You Need to Know

Tips to plan your savings in 2022

Tax Exemption and Scope of Coverage

Highlights of the Union Budget 2023-24

ITR 1: Sahaj Form

How to Boost Your Savings with Guaranteed Results

इनकम टैक्स रिटर्न कैसे फाइल करें?

How Much Money This Budget 2019 Can Help You Save

Presumptive Taxation for Business and Profession

How To Invest In Guaranteed Return Plans For Higher Returns And Financial Security?

स्रोत पर कर कटौती (टीडीएस) क्या है?

How to Save Income Tax with Insurance