How to save tax by figuring exemptions, reductions, rebates in I-T Act

Most of us desire to earn higher incomes. But, there is rarely anyone who thinks likewise about paying tax on those incomes. Tax evasion is a crime and so, abiding by tax laws is a necessity. What if there is a way to avoid unnecessary tax burden while still playing by the rulebook?

Here’s a quick look at those portions of Income Tax Act that describe benefits by way of exemptions, deductions and rebates. Before we assess these benefits to gauge how they fit into our tax planning schemes, we must understand what these terms mean and how benefits falling under each head is different from the other. That will aid in assessing how these apply in the calculation of our tax liabilities.

While it is best to avail a formal practitioner’s services, it would still be a good idea to access this knowledge ourselves and evaluate how we could position them in our specific business or investment decisions. A proactive approach is always desirable especially when it concerns our finances.