Employer’s Bonus: Waiting for a bonus from your company not only could fulfill your long desire for some extra shopping, but can help in save taxes as well. As you must know, bonus is fully taxable and the tax is applicable on it whenever it is included in your salary. If you see a reduced tax rates or any kind of positive modifications in next year, try to shift the bonus to next year to gain maximum profits. On the other hand, to prevent your employer from deducting tax on the bonus before handing it to you, make sure you provide all your tax-saving investment details beforehand, to avail the maximum bonus in hand and save it from further tax deductions.

Home Loans: home loans can help you save taxes from your income.

The claim can be made on the interest you pay for the home loan. It comes under HRA exemptions and can be claimed accordingly. You need to submit the tax certificate issued by the housing finance company as a proof. Apart from the interest, the principal amount of your loan is covered under section 80C for exemption.

Deductions Under Section 80C: This section provides tax exemption up to 1,00,000. To utilize benefits under this section you need to carefully analyze and sort out various investment options available and choose accordingly. Investments are the best tax-saving options, which includes, Employee Provident Fund, Public Provident Fund, National Saving Certificate, Bank FDs, Tax-saving infrastructure bonds, pension plans, Mutual Funds, ELSS (equity linked savings scheme) and (Unit Link Insurance Plan) ULIPs.

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