• Take a good look at section 80C
The taxation of salaried employees is bigger, perhaps no section than section 80C. To maximize a home salary, legally reduce income and lower tax payout. The lower tax liability will help to section 80C and offer Rs.150,000 is most important to individual taxpaying.
• Start with Rs.150,000
The starting point and work backwards are also considered by suitable options like insurance, PDF, taxpaying mutual funds and NSC.
• Begin with the most important options
The benefits of section 80C would take anyway, even no tax benefit. This will include life insurance, EPF should qualify an employer for the same, tuition fees and so on.
• Move to the second rung option
The most important way is the time to take a second rung, which includes tax saving mutual fund and ULIP. To take risk type or PPF or NSC can lower risk options.
• Have you taken a home loan
The home loan can claim a tax benefit by furnishing proof of repayment principle of the home loan under the section 80C. The section 24 is the interest payment of a home loan.