As you are preparing yourself for the tax season, you can do many things all by yourself. Besides, if you don’t have time, you can consult a tax advisor and try minimizing the tax you owe at the end of every financial year. So, if you are planning to save tax, then here are some tips you need to follow. Contact the QuickBooks support team to know more about how you can manage everything with the bookkeeping software.
Change The Ways You Get Paid
Getting paid can have an impact on the taxes. These include opting for the car offered by the company. You would not be spending time and money in buying a new car. While you get reimbursed for the company car, the tax break up depends on the vehicle’s engine and technical specifications. Instead of going for lunch allowances, you can opt for food coupons as they are usually exempted from tax. Depending on the salary and the organization you work for, you shouldn’t forget that education, medical, transport, and sundry allowances are not subjected to taxes. It’s quite obvious that you need to keep the receipts in a file or scan them and store at a secure location.
Take The Advantage Of Tax-Free Investments
Investments can be as complicated as you might think about. You may come across many options associated with different investment vehicles. But, according to the Section 80C of the Income Tax Act, you can claim tax deductions and think about savings and investments of up to Rs. 150,000 when life insurance is concerned. Public Provident Fund which offers tax-free interest of 8.7 percent can be taken into consideration. Moving ahead, you can avail options pertaining to deductions for personal medical insurance. Donations to non-profit organizations would also be exempted from tax.
Tax Deductions On Home Mortgage
When you consider the principal amount as a part of the home loan, you can claim deductions. Self-occupied properties are classified for tax breakups. While this is the case, you have to pay for the taxes when another apartment is considered. In this case, the amount would totally depend on the rental value. You would then be able to deduct the interest on the rent you pay every month.
Claim For Rental Allowance
If you are renting an apartment without paying any house rent allowance (HRA), then you can claim a maximum of 25 percent of the total income. Moreover, you can get Rs. 2000 per month credited to your bank account or excess rent which is equivalent to 10 percent of the total income. If you are facing issues with payroll management, then get in touch with the QuickBooks technical support team on 1-877-227-2303.
Get The Most From Pension Allowance
Any contribution towards employee provident fund is exempted from tax. The New Pension Scheme can offer a flexible way to set up pension contributions. While the aforementioned tips can help you, make sure you invest money carefully without considering long-term saving goals. Determine how you should use the money and then go for an investment scheme.
Jennifer Scott is an IT analyst who works closely with the QuickBooks support team. Apart from drafting blogs and articles related to QuickBooks, he is passionate about writing on a variety of topics. Visit this website for getting Quickbooks technical support.