Income Tax News: Want to Save Big? Check 5 Sure-Shot Ways to Maximise Savings on Investment Proof

Income Tax News: At the start of every financial year, employees must declare their investment plans to their company. This helps determine tax liabilities and deductions. As this new year starts and the financial year comes close, it’s crucial to submit proof of those investments to avoid higher tax deductions. Here are 5 sure-shot ways to save big on taxes by utilising deductions smartly. Let’s make the most of your investment proof and maximise savings.

1. Utilise Deductions Under Section 80C

Section 80C offers a range of investment options that allow you to save up to ₹1.5 lakh annually in taxes. Popular options include:

Employee Provident Fund (EPF)

Public Provident Fund (PPF)

5-Year Bank Fixed Deposit (FD)

Life Insurance Premiums

If you haven’t yet explored these options, now is the time to invest wisely and claim deductions.

2. Claim Tax Benefits on Education Loan Interest

Have you taken an education loan for yourself, your spouse, or your children’s higher studies? Under Section 80E, you can claim tax benefits on the interest paid.

No upper limit: You can deduct the entire interest paid.

Eligibility: The benefit can be availed for up to 8 years or until the interest is fully paid.

For instance, if your taxable income is ₹6,70,000 and you pay ₹2,00,000 as interest on an education loan, your taxable income reduces to ₹4,70,000. That’s a significant saving!

3. Leverage Health Insurance Premiums

Health insurance not only safeguards your health but also your finances. Here’s how it helps save taxes:

Deduction for individuals below 60 years: Up to ₹25,000 annually.

Deduction for senior citizens: Up to ₹50,000 annually.

Additional benefits: Separate deductions for premiums paid for parents' health insurance.

Investing in a health insurance plan for your family and parents ensures better health coverage and significant tax savings.

4. Save on Home Loan Interest

If you have a home loan, it’s a double win! You can claim deductions on:

Principal repayment: Up to ₹1.5 lakh annually under Section 80C.

Interest payment: Up to ₹2 lakh annually under Section 24B (for self-occupied houses).

Make sure to submit proof of home loan payments to enjoy these benefits.

5. Bank Savings Account Interest Deduction

Did you know the interest earned on your savings account is also eligible for tax exemption?

General deduction: Up to ₹10,000 annually.

For senior citizens: Up to ₹50,000 annually.

This deduction is an easy way to save on taxes without additional investments.

Plan Early for Maximum Tax Savings

While the financial year’s end is approaching, it’s always better to plan your investments at the start of the year. Early planning ensures well-thought-out decisions that align with your financial goals, helping you save more without last-minute hassles.

By following these five tricks, you can not only save taxes but also make smart financial decisions. Submit your investment proofs strategically and enjoy peace of mind!