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Home CURRENT AFFAIRS BUSINESS Income Tax News: Saving Bonanza! Stuck with Old Tax Regime? Dive into...

Income Tax News: Saving Bonanza! Stuck with Old Tax Regime? Dive into Last-Minute Tax-Saving Marvels

Examine last-minute ways for people adhering to the previous tax system to save income taxes.

Income Tax News

Income Tax News: Strategic use of multiple channels can result in significant income tax savings, but only if carefully planned. It’s important to first ascertain the necessary investment amount if you plan to make tax-saving investments.

Dive into Section 80C

Examine options including life insurance premiums, home loan principal repayments, university fees, Employees’ Provident Fund, etc., as they are eligible for Section 80C deductions of up to ₹1.5 lakh. Certain annual investments are exempt from income tax and can be deducted. Individual taxpayers must make investments before March in order to claim the benefit in the Income Tax Return (ITR) as the fiscal year 2023–24 draws to a close.

Section 80 C (PPF, Bank FD, ELSS)

“When time is limited, tasks may appear daunting, but there’s still a way forward. Evaluate your existing tax-saving expenses that come under 80C, such as insurance premiums, children’s tuition fees, EPF contributions, and home loan repayment. Subtract this total from ₹1.5 lakh to determine the remaining amount to be invested for tax-saving purposes u/s 80C,” said Abhishek Soni, CEO and Co-founder of Tax2win.

According to Hitesh Jain, Associate Partner, Direct Taxes, N.A. Shah Associates, individuals who choose to invest under the previous tax regime may do so in LIC, PPF, Fixed Deposit, Tax Saver Mutual Fund, etc., provided as the $150,000 maximum under section 80C is not reached. Popular choices under section 80C include fixed deposits, PPF, NPS, and ELSS funds.

Unlocking Additional Deductions with NPS Investments

Abhishek Soni stated that you don’t need to invest extra money for tax savings under section 80C if your current costs exceed the ₹1.5 lakh limit. If you haven’t reached the limit yet, use investments covered by Section 80C, 80CCC, or 80CCD. In addition, Hitesh Jain stated that taxpayers can invest up to 50,000 in NPS (Tier 1) and claim a deduction under section 80CCD(1B), which is in addition to the ₹1.5 lakh deduction permitted under section 80C.

Health Insurance

A deduction under section 80D may be claimed by paying a medical insurance premium or, up to a $5,000 cap, by paying for family and parent health examinations.

Donations

Hitesh Jain informed that anyone who would like to donate to charitable organisations that meet the eligibility requirements by March 31, 2024, may do so and claim the available deduction under Section 80G of the Act, subject to a cap.

Disclaimer: This information is intended for general knowledge only. Any financial decisions should be made in consultation with a qualified professional. DNP News Network Private Limited is not liable for any financial losses incurred based on the information provided here.

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