Gifts

Giving gifts is one of those tax saving techniques which is most often overlooked by people, or people are unaware about. By this technique, you can not only save the income tax on your income, but also be able to provide a suitable present to your close ones and relatives.

Each year, you can give up to Twelve Thousand dollars away, in the form of gifts, tax-free to each person you choose.

This is a very good way of giving your friends, colleagues, teachers, relatives and family gifts especially in cash or gold or through other assets like a holiday package, etc. so that it returns to you and is shown as expenses as far as the Income Tax Department is concerned. So, you don’t need to pay any tax on that income.

To conclude, your gifts does not only provides present for your family and friends but can also provide you with a reliable source of tax deduction, which can help you save a lot of tax on your income. You just need to keep all your receipts together to show to the income tax department at the end of the year. And, you can save tax on a lot of amount of money, which varies from country to country.