ITR Filing for AY 2023-24: Tax saving tips for Gen Z filing ITR for first time in India
Filing an income tax return (ITR) for the first time can be a daunting task, but with some tax-saving tips, Gen Z individuals in India can navigate the process more effectively. By understanding the tax slabs and rates applicable for the financial year, you can determine your tax liability. This knowledge allows you to plan your finances better and make informed decisions.
One of the key ways to save taxes is by utilizing deductions under Section 80C of the Income Tax Act. This section provides deductions up to Rs 1.5 lakh for investments in specified instruments. Some popular options include the Employee Provident Fund (EPF), Public Provident Fund (PPF), National Savings Certificates (NSC), tax-saving fixed deposits, and life insurance premiums. By investing in these instruments, you not only save taxes but also build a financial cushion for the future.
In addition to Section 80C, there are other sections under the Income Tax Act that offer deductions. For instance, Section 80D allows deductions for health insurance premiums paid for yourself, your family, and your parents. This can significantly reduce your tax liability while providing essential healthcare coverage. Section 80E offers deductions for interest paid on education loans, making it easier for you to pursue higher education without worrying about the financial burden. Furthermore, Section 80G allows deductions for donations made to specified charitable institutions, encouraging philanthropy while reducing taxable income.
Also Read: ITR Filing Due Date Extension 2023: Why you should not wait for extended last date, file now
It’s important to note that the government introduced a new tax regime in Budget 2020, which offers lower tax rates but eliminates
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