Tax, this three letter word spells a big headache for people. Many people do not even know how much tax they are paying every year. Being a tax advisor at H&R Block, I get many enquiries from my clients about tax savings. This article would be very helpful for such people because I am going to provide assistance to tax filers through this article on how they can minimize or save their taxes.
Every person is paying tax whether it is direct tax or indirect tax. Direct taxes include income tax which is paid by every tax payer directly to income tax department in form of TDS, self-assessment income tax at the time of return filling and advance income tax on income earned during the year. Indirect taxes include service tax, excise tax, VAT etc., which is paid by every person when they either avail of certain services or purchase goods and services from the market.
Whether you are a salaried person or a self-employed person, you always look to save taxes. At H&R Block we cater to both types of clients and they always look to save taxes as much as possible. Let us see how you can save your taxes in a genuine manner using some simple tips.
Salaried people can save their taxes in the following ways:
Businessmen can save taxes in the following ways:
If you are a businessman you can easily minimize your taxes as compared to salaried employees. You can claim all your business expenses against your income. However you need to make sure to keep all your bills for expenses securely for record. In case there is a scrutiny of your tax case and the assessing officer asks for bills, you can present all these bills. You can also minimize taxes by investing in a new house and claim deductions for interest and principal repayments under relevant sections of the IT Act.
NRIs can save taxes in following ways:
If you are a resident in two or more countries then you can escape the axe of double taxation by claiming credit of taxes in either country. India has DTAA agreements with many countries. So, if you are paying a tax in a foreign country then you can claim a relief from taxes under section 90 in India (If India is having DTAA agreement with that country) and under section 91 (if India is not having DTAA agreement with that country.)
Hope you all find this article helpful to save taxes in various ways. Wish you all happy tax savings.