According to sources going over salary statements can seem like a terribly boring chore, but it’s essential, because by doing so, you will know the tax deducted at source from your salary. Meanwhile according to sources the lower the taxes, the greater the money that gets credited to your bank account. Accordingly the more money you have at your disposal, the more you can spend, and the more you can save.
Sources reported that women absolutely need to save more, given their longer life spans and medical vulnerabilities. Further the Income Tax Act, 1961 divides income into five broad categories, namely, income from salaries; income from house property and profit and gains from business and profession (which deserves its own column); and finally, income from other sources.
Although bulk of your income comes from salary, it
is useful to know the other heads of income because there is a possibility that
you might get a benefit from another head of income. Furthermore term insurance
and investments in Tax Saving FDs and Mutual Funds are also covered here, so
make sure that your existing deduction is less than Rs 1,50,000 before you buy
a tax saving scheme and then make a decision.
