It is possible to pay less income tax, a fact that many of us fail to take advantage of while complaining about the lack of enough funds to save, to invest and achieve financial security. You can cut down the amount of income tax you pay by taking advantage of the tax laws. # 1 Life Insurance and Education policies Investing in a life insurance policy for nine or more years maturity can further reduce income tax as this qualifies you for income tax relief on the premiums paid. You can get relief amounting to $ 670 a year, or 15 % of the premiums, whichever is lower. # 2 Pension Plans Most employers will only contribute the mandatory minimum amount of 5 % towards employee retirement schemes. If you are employed and your employer has a registered retirement benefit scheme which is a pension scheme, you will notice that on your pay-slip, your contribution is deducted from your gross pay before income tax is calculated. Putting away more than the minimum means ...
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