Income Tax Saving: After March 31, taxpayers will not be able to use various tax saving tools to reduce tax on their income. Therefore, tax can be saved by using tax saving tools before March 31. In such a situation, by investing in them till March 31, tax can be saved for the financial year 2022-23.
Income Tax Return: As the current financial year is nearing its end, you have the last chance to save tax on your income this year. After March 31, taxpayers will not be able to use various tax saving instruments to reduce tax on their income. Therefore, tax can be saved by using tax saving tools before March 31. In such a situation, by investing in them till March 31, tax can be saved for the financial year 2022-23. Let us tell you in which ways tax can be saved.
Donation
It is not an investment option but definitely an option to contribute towards the welfare of the society and save on tax at the same time. People can claim deduction under section 80G for any income donated to charitable organisations, cash donation is exempted from claiming deduction.
PPF
Another long term investment option is the Public Provident Fund (PPF), which can be invested in for pension planning. It is also a good vehicle to invest for other long term goals like buying a house or child’s education. If you are planning to invest in your child’s education and other plans, it would be wise to create a minor PPF account in the name of your child. There will be no tax on the amount invested. At the same time, interest is also given on the money deposited on PPF.
National Pension Scheme
Another tax saving investment option is the National Pension System. Under this government-sponsored scheme, taxpayers can invest in this scheme to make systematic savings throughout their life. People can claim their tax benefits under section 80CCB of the IT Act. They can increase their tax deduction benefit under the scheme by an additional Rs 50,000. Subscribers can also switch from one fund manager to another fund manager under NPS. To take advantage of this scheme, people have to open their account.
