I suppose its the simple fact that you wouldnt be taxed for anything you purchased.
You can not just become exemp from taxes by choice. If you claim yourself as exempt and dont meet the requirments and file for exemption you could have the IRS breathing down your neck and years worth of fines. Be carefull with that.
Related posts:
- What Is The Maximum Limit Of Savings Deductable From Total Income Under Sec 80 Of Income Tax.?
- What Are The Various Ways Of Savings To Avoid Income Tax?
- What’s The Percentage From Your Income Goes To Your Savings Every Month?
- What’s The Percentage From Your Income Goes To Your Savings Every Month?
- At What Income Point Is Child Care Credit Better Than Pre Tax $5000 Savings?
best is MUTUAL FUND(ELSS) FOR HIGHER RETURNS
you can invest in the following schemes,
1. NSC(National Saving Certificate)
2.PPF(Public Provident Fund)
3.LIP(Life Insurance Policy)
4 Mutual Fund
5. Repayment of housing loan
6. Kisan Vikas Patra
I would like to inform you about simple tax which is an online IT filing facility wherein you can file your IT returns online, the software will ask you simple questions based on which it will calculate the tax due amount applying tax laws and rules then you can take printout and submit it to the IT office personnaly or you can ask for home pick up.
In the US, Municipal Bonds are generally state & federal tax free. US Savings Bonds aren’t subject to federal tax, but they are subject to state tax when you cash them in.
The following are the way in which you can get rebate from income tax u/s 80 (chapter-VI-A) up to 1 lac
1. NSC.
2.PPF
3.LIP.
4 MUTUL FUND
5. RE PAYMENT OF HOUSING LOAN
Money