Tax Deduction at Source (TDS) is a significant component deducted from your salary, determined by your tax slab rate bracket. However, there are methods available to mitigate the TDS deducted from your income.
Opt for Form 15G or 15H
Submission of Form 15G or 15H can help in avoiding TDS deduction. Form 15H is specifically for senior citizens and can be submitted when there is no tax on the total income.
Explore Investment Options
Investing in various schemes can also aid in TDS reduction. Consider the following options:
- PPF (Public Provident Fund): Offers returns on small investments and qualifies for deduction under section 80C.
- Sukanya Samriddhi Yojana: Provides a maximum rebate of up to Rs 1.5 lakh annually under Section 80C.
- NPS (National Pension System): Investment in NPS can save TDS under Section 80CCD of the Income Tax Act, 1961.
- ULIP (Unit-Linked Insurance Plan), Tax-saving FD, and ELSS (Equity-Linked Savings Scheme) Fund are other investment avenues to explore.
TDS Saving on Home Loan
For first-time home loan takers, TDS deduction can be minimized under section 80EE. You can avail a maximum exemption of up to Rs 2 lakh annually.
By employing these strategies, you can effectively reduce the amount of TDS deducted from your salary, thereby optimizing your tax savings.
