How to Save Income Tax?

If you are earning an income in a country then you are liable to pay tax on the same as per the income group you fall in. The government then uses this tax for the development and building of the nation. Every country has different rules and regulations related to tax rates and tax exemptions. It is very important to know all these slabs and exemptions and be a prudent citizen by paying taxes on time as the nation depends on it for further development. An individual, corporate, partnership, HUF, etc. are different status under which one may be taxed. Once you are clear about your status the next thing to find is the source of your income. In India, there are five major heads of income which are taxed under the India Income tax Act 1961.

Source of Income

1. Salaried Person

A salaried person’s main source of income is his salary which he/ she receives from the employer. These include gratuity, annuity, PFs, leave encashment, commission, bonus, etc. The total of these components is charged under the head ‘Income from Salary.’ A person may claim deductions and exemptions in the form of standard deduction (Rs. 50,000), house rent allowance, leave travel allowance, tax deduction, tax rebate/ relief, etc. Usually, the employer deducts tax at source and makes the payment. The employee can adjust the same from tax and accordingly pay or claim a refund from the IT department.

2. Business Man

Income from business is the next head of Income. The owner shows all the sales and earnings of its business and can deduct all valid business expenses from the gross amount to arrive at net earnings on which he is liable to pay the income tax.

3. House / Property Owner

A person can be taxed under this head if he is earning out of a let-out property/ land. He/ she can claim deduction for interest on loan taken for the purpose of purchase, construction, and repair of the property. A homeowner can claim two properties (maximum) as self-occupied and remaining house as let out for Income tax purposes. Rent income is the main income under this head of income. Property taxes/ standard deductions are allowed as a deduction from this income.

4. Capital Gain

Any person who earns a profit from the sale of any capital assets, like house property, stocks and shares, jewellery, gold, etc. is liable to pay capital gain taxes. This can be long term or short-term capital gain depending upon the period you held the capital asset before selling. One can also adjust loss on sales from gains to arrive at the net income under this head.

5. Other sources

Any income that is not covered in any of the above heads is shown under income from other sources. For example, winnings from lottery, puzzles, horse races, card games, game shows, etc.

Tax Slabs & Rates 2021-22

India has a slab system for taxation. The current slab rates apply to

  1. Individuals below 60 years of age
  2. Individuals in the 60-80 years age bracket
  3. Individuals more than 80 years of age.

These individuals can be taxed under old regime or new regime. If a tax payer chooses the option to pay taxed under the new regime, he has to forego certain standard deductions like 80C, 80D, 80TTB, HRA. So according to one’s age, he can choose the slab rates and pay income tax accordingly. Surcharge and cess are also levied under both the regimes. You can refer to any taxation website for relevant rates for the three different slabs. Income of up to Rs. 2.5 lakhs is exempt under all scenarios.

Best Ways to Save Tax

1. Insurance

An individual can save taxes under Section 80C by investing in Life insurance / health insurance plans. You can claim a maximum deduction of Rs 1,50,000 per annum against the premiums paid for life insurance policy. You can claim a deduction on premiums paid for oneself, spouse or dependent child.

2. Mutual Fund

There are many tax saving mutual funds, under which an assessee can invest to claim tax deduction under section 80C. These funds are subject to a lock-in period, ie. Once invested you cannot get out before a lock-in period of 3 years. As these funds mostly invest in equities, it is a good way to stay put to reap longer term returns.

3. Property

One can claim income tax deduction on repayment of the principal amount of home loans on either self-occupied or let out properties. One can also invest the sale proceeds of a prior house in buying or in construction of a new property. In that case, the invested portion of the sale proceeds won’t be taxable.


Equity linked saving scheme is another option where tax payers could invest to claim tax deduction under Section 80C. Many prominent fund houses have several products in this category. These also have a lock-in period of three years.

5. PPF

One can claim deductions of up to Rs. 1.5 lakhs by investing in the government’s Public Provident Fund. The interest and maturity amount are both exempt from tax. Generally, the PPFs have a lock-in period of 15 years.

6. SSY

Sukanya Samriddhi Yojana is another investment option to claim tax deductions under section 80C for upto Rs. 1.5 lakhs. The scheme pays an interest of 7.6% per annum and one can invest from Rs. 250- Rs. 1.5 lakh per annum. This scheme has a lock-in period of 21 years.

7. Pension Scheme

A salaried person can claim tax deduction on any voluntary or defined contribution pension/ retirement scheme, one that is regulated, for upto Rs. 1.5 lakhs (under section 80CCC).

8. Rooftop Solar

You can also claim income tax benefits by installing solar panel system at your establishment. Solar producers can claim upto 33% of their total expenses (accelerated depreciation) over a period of three years. There are anti-dumping inclusions as well as excise and custom duty exemptions on solar parts and products. Then there are capital subsidies (40% subsidy on benchmark capital costs on offer for units of up to 3KW capacity, and 20% for larger units up to 10 KW) which the government grants for installing solar systems at your homes/ office, etc. Also, there is income-tax benefit for loan-purchase of electric vehicles.

9. NGO

Donations to several NGOs qualify for tax exemption under Section 80G for upto 10% of your gross income. Some donations are 100% exempt while others are upto 50% exempt.


Paying taxes on time is one of the main duties as the citizen of any country. The government utilizes these taxes for the betterment and development of the nation. It is also important to know about the different options available to tax payers to save taxes like savings schemes, mutual funds, etc. Recently, solar installation is gathering a lot of momentum given the nation’s focus on reducing the overall carbon-footprint. The government has therefore, enabled tax saving option on the same to encourage more installations in the country. Hence, installing a solar system on one’s rooftop has also become an attractive option to save taxes and add to the property value in the long run.




Заказать дубликаты номерных знаков
Дубликат номера

Stephanie Sally

Stephanie Sally

Hello everyone, I am from Wembley, Britain. I want to write this testimony to tell others and thank Dr. Odunga for what he has done for me. The first 12 years of my marriage I had 5 miscarriages and I was called all sorts of names by my mother-in-law and this made my marriage life very hectic and a burden of sorrow. I contacted Dr. Odunga for help and I will say that he is a very strong and honest man and he indeed helped me solve my problem. I saw his email in a testimony and I contacted him, little did I know it would be the end of all my problems. After 2 days of contact, I received a fertility herb and he told me to use it. The herb worked and my husband even loved me more and bought me expensive things. One afternoon, I went to a nearby hospital and came back home with the positive result of my pregnancy and after 9 months I gave birth to a baby boy. Ever since I contacted Dr. Odunga, my story has been different. I have 3 children at present and I am very happy in my marriage. Please, contact him at OR Whats App him +2348167159012 to help you too

Manuel Franco

Manuel Franco

I just want to say Thank You to everyone who supported me through the years. My name is Manuel Franco, New Berlin, Wisconsin. My story of how I won the Powerball lottery of $768.4M is a bit of a tale. I have been playing Powerball tickets for 6 years now since I turned 18. I bought my first ticket on my 18 birthday. I was feeling very lucky that day because I had contacted Dr. Odunga Michael to help me with the winning Powerball numbers. I really had that great great feeling that I looked at the camera wanting to wink at it. I only did a tiny part of it and trusted him. He gave me the numbers after I played a couple other tickets along with it for $10. I checked my ticket after the winnings came online and saw the numbers were correct including the Power play. I screamed for about 10 minutes because it felt like a dream. I had won $768.4M. You can check my winning testimony with the lottery officials just with my name search. Thank you Dr Odunga. Well, his email is and you can also call or Whats-app him at +2348167159012 so you guys can contact him

Appu. P

Appu. P

I have spent Rs 133639 for installing roof top solar panel. Howmuch income tax reduction I will get this year?

Leave a comment

ਸਭ ਤੋਂ ਵੱਧ ਵਿਕਣ ਵਾਲੇ ਉਤਪਾਦ

Engineer VisitEngineer Visit
Loom Solar Engineer Visit
Sale priceRs. 1,000 Regular priceRs. 2,000
Dealer RegistrationLoom Solar Dealer Registration
Loom Solar Dealer Registration
Sale priceRs. 1,000 Regular priceRs. 5,000