Income Tax News: Financial Bonanza! Want to Save Lakhs in Taxes in the New Year? Plan it Like THIS

Income Tax News: The beginning of a new year means that now is the ideal moment to start planning your finances. And a major component of it is tax planning. When you file your income tax return the following year, you'll look back on this period of time and realise that you ought to have made plans to reduce your tax liability. You still have plenty of time to make crucial investment decisions, so don't worry. In terms of tax planning, this is the ideal time to make investments that will save you money on taxes. Therefore, there are tried-and-true investment options available where you can invest money and save taxes.

PPF Account Opening for 15 Years

A Public Provident Fund (PPF) account is opened for a period of 15 years. Any citizen of India is able to invest in this. Long-term large fund investments and safe investments are better made with this account. The money invested in this and the interest that is received at maturity are both tax-free.

Navigating Long-Term Investments with the National Pension Scheme (NPS)

A long-term investment plan is the National Pension Scheme (NPS). When you invest in this, you will receive a sizable lump sum payment when you retire. In addition, the amount and performance of your annuity determine your monthly pension. Investing in this will yield three advantages. Investing in this scheme will yield three benefits: firstly, you will accumulate retirement funds for yourself; secondly, you will receive regular income through an annuity after retirement; and thirdly, you will be eligible for an additional tax deduction of Rs 50,000 under Section 80 CCD (1B).

Why Investing in a Home Is a Top Choice for the Upcoming Year

This is a better investment if you intend to purchase a home in the upcoming year. These days, the majority of people purchase a house or flat with a bank home loan. You are eligible to receive a tax exemption in this case for both the principal amount and interest paid on your home loan. Under Section 24, you can receive tax exemption on the interest charged on the principal amount up to Rs 2 lakh, but you cannot receive tax exemption on the principal amount of a home loan up to Rs 1.5 lakh per year.

The Modern Imperative of Health Insurance

Health insurance has become a need for everyone in the modern world. In addition to offering your family and yourself protection, health insurance allows you to take advantage of the Section 80D tax deduction when you buy a policy. In addition to the deduction of Rs 25,000 on the premiums paid for your spouse's and dependents' health insurance, you are eligible to deduct taxes on the premiums paid for your parents' health insurance. There is an upper limit of Rs 50,000 if your parents are over 60, making the maximum deduction amount Rs 75,000.

Understanding Term Life Insurance for Financial Security

Term life insurance offers numerous tax benefits and is a great way to give your family financial security in the event of your untimely death. The beneficiaries of a term life insurance policy receive a tax-free death benefit. This implies that the amount that your loved ones receive will be tax-free. Furthermore, tax deductions are available for term insurance plan premiums. Up to Rs 1.5 lakh, this deduction is permitted under Income Tax Section 80C. Return of Premium plans also provide the benefit of a tax-free premium return (less GST) in the event that the policyholder lives out the duration of the policy.

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