Income tax saving tips for salaried individuals

NEW DELHI: Tax planning for salaried employees is easy and simple if do it on time and take care of few important points. The planning for income tax saving should start at the beginning of the financial year i.e. April and not in the months of February and March.
Here are five important points for you to consider to save income tax on your salary:
1) Take full advantage of Section 80C
It is one of the biggest tax saving options for salaried employees.Take a good look at Section 80C to maximize take-home salary and legally lower the tax payout. The Section 80C offers as much as Rs 150,000 in terms of tax benefit.
2) Divide Rs 150,000 income tax rebate into different options
Don't invest all Rs 150,000 at one place instead spread it across different suitable options such as insurance, PPF (public provident fund), tax-paying mutual funds, NSC (National Savings Certificate) and so on. The choice of investment tool should be made based on your financial goals, risk profile and income levels.
3) Make the priority list
Don't invest only thinking about saving tax. Choose funds which are essential, for example, life insurance, employee provident fund (EPF), tuition fees and so on. After you are done with these, the next step is to consider in investing tax-saving mutual funds, ULIPs (unit-linked insurance plans), ELSSs equity-linked saving schemes). You can also invest in PPF and NSC if you prefer low risk options.
4) Tax benefit under home loans
If case you have taken a home loan, you can claim tax benefits under Section 80C by furnishing proof of principal re-payment on the home loan. You can also claim tax benefits under Section 24 towards interest payment on the home loan.
5) Other options
These are only some of the tax saving options under Section 80C. You can also get the benefit of Section 80C by submitting - HRA rent receipts, medical bills, travel bills, conveyance bills, receipt of health insurance/medical premium, education loan, proof of donation etc.