4. Life Insurance Plan For Tax Saving

It is not advisable to look at Life Insurance Plans as only tax savings as you should always to go for such plans which suits to your life and also for your financial planning, it is not necessary to buy policies every year, if it is already invested sufficient, but you would like to invest again then you can opt for ULIP plans as payouts from these Life Insurance plans are exempted from pay tax.

5. House Rent Allowance

If the portion of your salary includes House Rent Allowance even called as HRA, you are also paying rent and the particular house you are residing does not belongs to your kids or spouse or in your name or even you can exchange such houses with your relatives or friends and whose house belongs to a non earning member.

Then the total rent paid or the House Rent Allowance you are getting, whichever is less among these two will be deducted from your gross income from the salary you are drawing, but the deductible amount should not exceed 50 percent of your salary, this is applicable those who are staying in metros and further if the rent shown by you exceeds 5000, then it is mandatory to submit a lease document and also rent receipts affixed with a revenue stamp.