Salaried individuals can save some huge cash by varied avenues obtainable for tax financial savings if deliberate and executes in a correct method. It is all the time higher to start out your tax planning firstly of the yr reasonably than in the direction of the top. An early begin helps in higher planning and higher allocation.
Vikas Singhania, CEO, TradeSmart says funding in tax-saving devices is the preferred amongst tax- payers. Tax deductions are allowed on the quantities invested in specified devices beneath part 80C of the Income-tax Act, 1961.
Among the favored funding choices are Employees’ Provident Fund (EPF), Public Provident Fund (PPF), Fixed deposits of minimal 5 years tenure or extra. Life insurance coverage insurance policies, ELSS mutual funds, National Pension Scheme (NPS) and different pension plans.
Effective April 1, 2022, when the FY 2022-23 began, all particular person salaried taxpayers have been given the choice to both select the outdated revenue tax regime or go for the brand new one.
“Investments as much as ₹1.5 lakh per monetary yr is allowed for deductions. This is relevant if the tax payer is following the outdated tax regime. In case the taxpayer opts for the brand new tax regime that provides concessional tax charges, lots of the tax deductions and exemptions obtainable beneath the outdated tax regime just like the part 80C profit should be forgone,” stated Vikas Singhania.
Use Section 80C for tax saving
● Pension plans
● PPF accounts
● Equity mutual funds
● 5-year tax-saving deposits
Life insurance coverage insurance policies or time period plans
The final date date for submitting Income Tax (IT) returns for Financial Year 2021-22 is July 31. This means tax payers should IT returns earlier than this date except the centre extends it. Often taxpayers wait until the final minute to file their revenue tax returns.
While planning on the way to save tax in your hard-earned cash, a vital exercise, it’s important to guage right revenue tax-saving schemes.
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