The pleasure of earning and spending money is unparalleled in comparison to all kinds of material pleasures for the countless people living in the world. Along with giving us respect and prestige in the society, it makes our standard of living very good and full of facilities. Yet, we often overlook the importance of saving in the process of spending money. After this, we can also have such a bad time when we do not have enough money to meet our needs.
In fact, you can save a lot of money by investing on your vital needs and also get tax exemption in the process. This is a very attractive win for you. In this article, we are presenting some of the best saving tips for you, which will help you to spend wisely and along with this you will also be able to get the benefit of tax exemption in India. Let’s read this article further.
This is great news for professionals living and working with their families! If you are planning to buy a house for yourself and your family, apply for a home loan jointly with your wife. This will make both of you entitled to benefit of tax deduction of Rs 02 to 2.5 lakhs. Even better, if a person with a working son/daughter can split the loan into three parts, all of them can take advantage of this tax deduction. This is a great way for any professional to save their precious money.
You must also note that the amount provided by your employer for the hotel accommodation you get for the first two weeks during the first month during your job transfer is not included in the taxable income. You can save with that money too.
If you are getting bored with your work life…..then it’s time for you to take a break and go on a journey. But, it will not cost you a single penny. You must be surprised to know this….. Well, LTC exemption is allowed as traveling allowance to each salaried employee in respect of two domestic outings in a span of four years. So, if you have not availed this facility for the last 02 years, take a break now, keep a record of all travel bills and claim your LTC.
Be sure to show your expense bills if you are traveling for official purposes. In this case, you can claim your transport allowance from your employer, and this money is not covered under taxable income. This will definitely prove to be beneficial information for you.
Provident Fund (PF) is a golden asset for every employee. However, you cannot withdraw this amount earlier as its block period is 5 years. If you want to take a loan on the basis of your PF balance, then you can do so after 01 year of maturity of PF balance, subject to various terms and conditions.
house rent savings
If you or your wife/children do not own a house, and the company does not provide any HRA, you can show your house rent bill and avail tax exemption on this house rent under section 80GG. The maximum limit for this deduction is Rs 5,000 per month.
Your HRA and Loan
Now some special information is being presented for you. Suppose, you have bought a house on loan, and are currently living in a rented house, which is far away from the place where you have bought this house for yourself, then you will get HRA exemption and house Interest deduction is allowed on the loan.
These are some of the best ways for you to save your money and maintain your standard of living. Hope, this information will prove to be very useful for you in saving your money and getting tax exemption.
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