TaxSaving is necessary to for people who have to pay their income tax. One cancalculate the tax that they have to pay with the help of the Income Tax Slab.There are many schemes that provide rebate on the tax that one has to pay. Someof the most popular schemes are listed in Section 80C.
Areyou in a hurry to pay your tax, but, dont know which schemes to apply for toget the rebate? Confused with all the tax jargon being used everywhere byexperts? Any person who has to pay tax must be having sleepless nights about31st March, the deadline for paying their tax. It can be really tiring with allthe information without understanding the basics. Tax is a charge levied by thegovernment, on a person, an activity, a commodity or amount of money. Incometax is the charge put on the income of a person. The government, however, alsoprovides means by which an individual can save money on the tax that they haveto pay. Taxes are means of collecting money from the people for the developmentof the countrys defenses and infrastructure. Taxes saving options, on theother hand are means to generate funds.
Anyperson who has to pay tax needs to know the amount of tax that one is liable topay to the government. This information is provided by the IncomeTax Slab releases by the government every financial year. The incometax slab gives the percentage of tax that a person, of different age groups andsex, has to pay to the government. For every income group, there is a differenttaxation percentage. There are different tax slabs for men, women and seniorcitizens. The income tax slab starts at Rs. 2.2 lakh to Rs. 5 lakh.
Thereare various schemes, by means of which an individual can save income tax. Theseschemes have been listed under various sections of the Income Tax Act, 1961.The most popular schemes have been listed Under Section80C of the Act. The various tools listed under this section are lifeinsurance policies, National Saving Certificates, Senior Citizens SavingSchemes, and Public Provident Fund and so on. All these tools provide means bywhich a person can save money up to Rs. 41715 on their income tax. Theseschemes are not only just a means to save tax, but, are also a means to createfunds for the individual. A person can invest in any of these schemes up to a maximumlimit of Rs. 1 lakh. All these schemes are subject to this limit.
Thereare many people who give advice on means of saving tax and how to apply for it.However, depending on the Income bracket, age, fundsand the risk capability of the individual, there is the possibility that eachscheme may provide different returns. One can find information about theseschemes and do much more using the internet.