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Income Tax Saving: Just 1 Day Left For March 31 Deadline, Know What Experts Say – Prime Time News24


The monetary yr 2023-24 is coming to an finish on March 31.

Revenue Tax Act offers sure avenues to avoid wasting tax by investing funds in specified securities like PPF, LIC premiums, fastened deposits, ELSS , ULIP, NSC, and many others

The monetary yr 2023-24 is coming to an finish on March 31. Taxpayers have the final alternative to avoid wasting their taxes for the fiscal. In a last-minute rush, taxpayers make errors in panic. A senior earnings tax knowledgeable suggests key issues to think about because the March 31 deadline is simply across the nook.

Aarti Raote, associate at Deloitte India, stated, “This can be a busy time for funding advisors, tax consultants and taxpayers in India as we’re solely a few days away from March 31. This frenzy is to take a position funds in some tax saving investments to take pleasure in tax deductions which can lead to some tax financial savings.”

Raote stated the Revenue Tax Act, 1961, offers sure avenues to avoid wasting tax by investing funds in specified securities like PPF, LIC premiums, fastened deposits, ELSS , ULIP, NSC, and many others.

“Nonetheless, when investing, one should undertake a holistic and long-term method and decide the very best funding on the standards of return on funding, lock-in interval, reciprocity of funds for future years, minimal funding required, tax affect on maturity and the plans that the taxpayer has in thoughts for the longer term. For eg. One should perceive that PPF offers good returns which can be tax-free as nicely however require the taxpayer to contribute Rs 500 yearly and there’s a lock-in of 15 years,” she stated.

Equally, tax-saving fastened deposits provide a decrease fee of curiosity and have a lock-in for about 5 years. Thus, one should contemplate all facets of a selected funding to make the suitable alternative and optimise your advantages, Raote added.

Specialists additionally recommend taxpayers to keep away from widespread errors to maximise tax financial savings.

Few Widespread Errors

Ignoring Part 80C: Part 80C of the Revenue Tax Act offers varied avenues for tax-saving investments corresponding to ELSS (Fairness Linked Financial savings Scheme), PPF (Public Provident Fund), NSC (Nationwide Financial savings Certificates), and many others. Many taxpayers fail to utilise the complete restrict of Rs 1.5 lakh accessible below Part 80C. Consider all choices and make investments properly to maximise tax financial savings below this part.

Incomplete Documentation: Guarantee all crucial documentation is in place for tax-saving investments. This contains funding receipts, premium fee certificates, mortgage certificates, and many others. Incomplete documentation might result in disqualification of tax deductions. Preserve good information of your investments and deductions. The IT division might ask for documentation to confirm your tax filings.

Ignoring Tax Planning Devices: Aside from Part 80C, there are different sections corresponding to 80D (for medical health insurance premiums), 80E (for schooling mortgage curiosity), and 80G (for donations to specified funds) that supply tax advantages. Ignoring these avenues can lead to missed alternatives to avoid wasting tax.

Not Contemplating Lengthy-term Targets: Tax-saving investments ought to align together with your long-term monetary objectives. Keep away from making investments solely for tax-saving functions with out contemplating their suitability and alignment together with your monetary aims.

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