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Secret of more income and less tax

PhonePe Team|1 min read|13 December, 2019

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Did you know that you can increase your in hand salary by reducing the tax you pay?

Yes, that’s right. The Government has created many attractive tax-saving opportunities through which you can reduce tax and increase your in hand salary. However, not all of us take advantage of such opportunities. Through this series of three short articles we want to share with you the secret of how you could save up to Rs. 46,800 in tax every year. Yes, you read that right — up to 46,800 every year!

Let’s begin…

The easiest way to save tax is under Section 80C of the Income Tax Act. You can reduce your taxable income by up to Rs. 1,50,000 every year by claiming deductions against certain investments and expenses. Here is a list of some of the common investment options and expenses under Section 80C:

How much tax can you save by investing under section 80C?

The table below shows how much tax you can save at different levels of taxable income:

How much should you invest?

If in the current financial year you have already made any of the eligible investments or incurred any of the expenses mentioned earlier but have not exhausted the entire ₹ 1.5 Lakh limit, you can invest the balance amount to claim the full tax benefit.

Now that you have understood how you can save tax under Section 80C, do you want to know the best investment option under Section 80C?

Read our next article find out how you can Save Tax And Grow Your Wealth at the same time.

Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

PhonePe Wealth Broking Private Limited | AMFI — Registered Mutual Fund Distributor ARN- 187821.

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