Salaried individuals can save some huge cash by numerous avenues obtainable for tax financial savings if deliberate and executes in a correct method. It’s all the time higher to start out your tax planning firstly of the 12 months somewhat than in the direction of the tip. An early begin helps in higher planning and higher allocation.
Vikas Singhania, CEO, TradeSmart says funding in tax-saving devices is the most well-liked amongst tax- payers. Tax deductions are allowed on the quantities invested in specified devices below part 80C of the Earnings-tax Act, 1961.
Among the many fashionable funding choices are Staff’ Provident Fund (EPF), Public Provident Fund (PPF), Mounted deposits of minimal 5 years tenure or extra. Life insurance coverage insurance policies, ELSS mutual funds, Nationwide Pension Scheme (NPS) and different pension plans.
Efficient April 1, 2022, when the FY 2022-23 began, all particular person salaried taxpayers have been given the choice to both select the previous earnings tax regime or go for the brand new one.
“Investments as much as ₹1.5 lakh per monetary 12 months is allowed for deductions. That is relevant if the tax payer is following the previous tax regime. In case the taxpayer opts for the brand new tax regime that gives concessional tax charges, most of the tax deductions and exemptions obtainable below the previous tax regime just like the part 80C profit should be forgone,” mentioned Vikas Singhania.
Use Part 80C for tax saving
● Pension plans
● PPF accounts
● Fairness mutual funds
● 5-year tax-saving deposits
- Life insurance coverage insurance policies or time period plans
The final date date for submitting Earnings Tax (IT) returns for Monetary Yr 2021-22 is July 31. This implies tax payers should IT returns earlier than this date until the centre extends it. Usually taxpayers wait until the final minute to file their earnings tax returns.
Whereas planning on tips on how to save tax in your hard-earned cash, a vital exercise, it’s important to guage appropriate earnings tax-saving schemes.
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Supply: Live Mint