How to save money on income tax to be on a firm footing in 2024

financialexpress.com:

In the ever-evolving landscape of taxation, staying financially secure requires strategic planning. As we approach the new fiscal year beginning with April 2024, individuals and businesses are seeking ways to save money on income tax while ensuring a firm financial footing. Taxpayers are left with only 1 quarter before the beginning of a new financial year to appropriately plan their investments and expenditures and, thus, reduce their income tax liability.

This article aims to provide valuable insights and practical tips to enable you to navigate the tax terrain and optimize your financial position by way of highlighting certain rational and legitimate strategies which can be factored into by the individual taxpayers to reduce their tax liability and enjoy a larger share of residual income.

Considering the existing provisions of the Income Tax Act, 1961 (‘IT Act’), the following schemes / alternatives can be used by taxpayers, either individually or in combination, to shrink the burden of tax.

Section 80C of the IT Act provides with ample of investment related deduction options for individual taxpayers, which includes premium for life insurance, contribution in Public Provident Fund (PPF) and National Savings Certificate (NSC), investment in Equity Linked Savings Scheme (ELSS), etc.

Apart from investment-linked deductions, section 80C also offers a bunch of expenditure related deductions such as principal repayment of housing loan, tuition fees for the purpose of full-time education of specified family members, etc. Taxpayers can claim a deduction of upto Rs 1.5 lakh per annum u/s 80C of the IT Act.

Also Read: 10 smart money moves to make in 2024 for a healthier financial life

The Ministry of Finance vide section