Income Tax Return: Investment planning for the next financial year has started from the side of tax payers. The current financial year is ending on 31 March 2023. You can also save your tax by taking some steps before March 31, 2023 to save tax. You can save a lot of money by taking a few steps by investing in different schemes. Let us know what you have to do to save tax?
First of all, you can claim for saving up to Rs 1.5 lakh under Section 80C of Income Tax. Under this, you can save tax by investing in PPF, ELSS, EPF, tax saving FD and other things.
Apart from this, you can also save tax by investing in National Pension Scheme (NPS). This is a smart way of investing. Tax payers can claim an additional deduction of Rs 50,000 over and above the limit of Rs 1.5 lakh under section 80C.
Taxpayers can claim a deduction of up to Rs 25,000 towards health insurance premium for their spouse and children. Apart from this, the tax payer can also claim an additional deduction of Rs 25,000 in the form of health insurance for his parents. If your parents are senior citizens, you can claim Rs 50,000 for their medical insurance.
If the taxpayer has bought an electric vehicle or plans to buy one in the future, you can claim a deduction of up to Rs 1.5 lakh on the interest paid on the loan. This will also result in substantial saving of tax.
Taxpayers can take advantage of the tax rebate available on the home loan to reduce the amount of income tax. This includes both the principal amount and the interest payment. You can get a deduction of Rs 1.5 lakh under Section 80C of the Income Tax Act and Rs 2 lakh under Section 24B.
Taxpayers should also consider paying their taxes in advance. If the total tax payable by a taxpayer exceeds Rs.10,000, he can pay advance tax to avoid interest in future.
