Financial Savvy

Income tax is a crucial component of a country's revenue system. It is an amount levied on the income of individuals, organizations, and entities. In India, the Income Tax Act of 1961 governs the provisions and regulations related to income tax. While paying taxes is a civic duty, there are ways to reduce the tax burden legally. In this blog, we will discuss some of the ways in which one can save income tax in India. Invest in tax-saving instruments : The government of India provides tax benefits to those who invest in specific financial instruments such as Public Provident Fund (PPF), National Savings Certificate (NSC), tax-saving mutual funds (ELSS), and Fixed Deposits (FDs) with a minimum lock-in period of five years. The amount invested in these instruments can be claimed as a deduction from taxable income under Section 80C of the Income Tax Act up to a maximum of Rs 1.5 lakh per year.                                                                                             

Introduction Income tax is a tax levied by the government on the income earned by individuals, companies, and other entities. It is a major source of revenue for the government and is used to fund various social welfare programs, infrastructure projects, and public services. The tax rates, exemptions, and deductions vary from country to country, and are based on the income earned by the individual or entity. In this blog, we will discuss the basics of income tax, its calculation, and its importance. Basics of Income Tax Income tax is a tax levied on the income earned by individuals, companies, and other entities. The income can be in the form of salaries, wages, interest, dividends, capital gains, and other sources. The tax is calculated as a percentage of the income earned, and the rates vary depending on the income bracket. In most countries, income tax is progressive, which means that the tax rate increases as the income increases. In addition to the tax rate, there are

GST , or Goods and Services Tax , is a comprehensive indirect tax levied on the supply of goods and services in India. It was introduced on July 1, 2017, replacing multiple indirect taxes like excise duty, service tax, and value-added tax (VAT). The implementation of GST was a significant economic reform in India, aiming to simplify the tax structure and reduce tax evasion. GST is a destination-based tax, meaning it is levied at the point of consumption or sale. The tax is collected at each stage of the supply chain, starting from the manufacturer or supplier to the end consumer. The tax is then collected and deposited with the government by the person making the supply. The GST system in India has four tax slabs, namely 5%, 12%, 18%, and 28%. The tax rates are based on the type of goods or services being supplied, and some goods and services are exempt from GST. For example, essential items like food, medical supplies, and educational services are exempt from GST. The GST system in I