Top income tax-saving investments option to consider before 31 March. Check here
Every year, our employers remind us to start planning our taxes. While taxes are often seen as a financial burden, what can make it even more stressful is a lack of understanding about tax planning. Many taxpayers find it challenging to incorporate tax-saving strategies into their financial plans.
As the end of the financial year approaches, it becomes essential to make well-informed decisions about tax-saving investments before the March 31 deadline, especially for those who opt for the old tax regime. Simply allocating funds randomly to any tax-saving option is not recommended.
“Evaluate current investments like insurance premiums, EPF contributions, etc. Deduct this from the ₹1.5 lakh limit to know the remaining eligible amount," said Abhishek Soni, CEO and Co-founder of Tax2win
Consider LIC policies, PPF, Fixed Deposits, and Tax Saver Mutual Funds.
Contributions to NPS are eligible for tax deductions under Section 80CCD(1B) over and above the limit of Section 80C. Additionally, taxpayers can claim an additional deduction of up to Rs. 50,000 under this section.
“For saving further tax you can consider putting up to ₹50,000 every year in an NPS account to claim an exclusive deduction under Section 80 CCD(1B). This will take your deduction to ₹2 lakh," said Mumbai-based tax and investment expert Balwant Jain.
Premiums paid towards health insurance policies for self, spouse, children, and parents are eligible for tax deductions under Section 80D.
“Medical insurance premium to be claimed at Rs. 50,000. ( ₹25,000 for self-spouse and children and ₹25,000 for dependent parents below 60 years). Claim medical insurance premium paid up to a maximum of ₹1,00,000 per annum if availed for senior citizens. If senior citizens are
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