Want To Avoid TDS? Here’s All You Need To Know About

As per the Income Tax Act, a corporation or person making a payment is entitled to subtract tax at source if the payment crosses certain limits. Tax Deducted at Source (TDS) shall be deducted at the rates fixed by the Tax Authority. The corporation or individual issuing the payment is called a deductor and on the other side, the company/person collecting the payment is referred to as the deductee. It is the obligation of the deductor to subtract TDS and deposit the same with the government. By contributing to suitable tax-saving plans, one of the easiest ways to stop getting your salary cut is. Under Section 80C, one can try and claim as many tax benefits as possible.

Investing in PPF (Public Provident Fund), NPS (National Pension System), ULIP (Unit-linked Insurance Plans), Sukanya Samriddhi Yojana, Tax Saving FDs, ELSS Mutual Funds could be some of the ways of avoiding paying TDS. Documents of school fee payment receipts from your children bearing the school emblem can also allow you to gain tax benefits. Additionally, one can save up to Rs 1.5 lakh per year under Section 80C on both self-occupied and other sources of income. Employees are also entitled to claim tax deduction for travel expenditures incurred while on leave anywhere in the country, as LTA is part of the overall CTC of an employee. Section 80EE enables first-time homebuyers to obtain tax breaks. They can seek a tax gain on interest on home loans. Under Section 24, this deduction of over Rs 2 lakh is tax-deductible.

The House Rent Allowance (HRA) exemption can also be claimed by people living in rented homes. If one is living in rented accommodation, the HRA allows people to partially reduce their taxes. The deduction is only for expenses linked to rented accommodation and can be obtained by submitting rental records, etc. In fact, a deduction of up to Rs 25,000 for the medical premium paid for yourself, minor children, and your spouse in a single financial year can be claimed under Section 80D. Under the National Pension Scheme (NPS), you can also start investing and also get tax relief on contributions.    

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