Here Is How to Save More On Taxes

Paying a major part of your hard earned money in taxes pinches a lot, doesn't it? However, if you finances are planned in a systematic way, your tax burden may go down substantially. Keeping that in mind, PropGuide lists some tips to save on taxes.

• One of the best ways to save on taxes is to maintain separate income files for each family member. By doing this, you can enjoy benefits under Section 80D of the Income Tax Act by taking out a Mediclaim Policy for each of your family members. If your spouse already has a separate income file, you can start taking care of non-clubbing provisions. You can also plan your incomes in such a manner that both of you can individually be eligible for tax deductions under Section 80C. Jointly owned plots in India can get you a deduction of Rs 2 lakhs an annum for each. Paying Mediclaim premiums also help you get tax deductions. Also, ensure that your children's spouses have individual files. For children pursuing education, you could take an education loan for them to maximise benefits. Mutual funds or direct investments are the best ways to make investments tax free.

• Most people have life insurance policies that help them get deductions under Section 80C of the Income Tax Act. However, with the changing lifestyle of today's young India, it is important that you see beyond the tax implications. Taking a term insurance policy is a good option for those with loan for home, education, or car.

• Various upcoming government programmes and improving market conditions indicate towards the revival of the real estate sector in India. So, investing in real estate in India could be a good investment option. For married couples, it is a wise move to buy property jointly and claim tax benefits individually.