ITR Filling: Income tax filing is a complicated process, as a result of which taxpayers often make mistakes and miss out on important deductions and exemptions, which also leads to huge losses. In such a situation, let us know what to keep in mind while filling ITR.
Income Tax Saving: Tax planning is an essential component of financial planning. A good tax planning can help people save tax money as well as meet their financial goals. Taxpayers are provided with various tax saving instruments on which exemption can be claimed, but to avail these exemptions it is necessary to know which tax-saving instrument to choose and how to claim the deduction.
Income tax filing is a complicated process, as a result of which taxpayers often make mistakes and miss out on important deductions and exemptions, causing huge losses. In such a situation, let us know what to keep in mind while filling ITR.
Taxpayers
often miss out on taking advantage of the deductions available to them. These deductions are available for various categories including investments, insurance and home loans. In such a situation, know about the list of available deductions and take full advantage of them.
Ignoring Tax Exemptions
Tax Exemptions help people to reduce their tax liability, but many people are either unaware or do not avail tax exemptions. In such a situation, tax can be saved by taking advantage of these tax exemptions.
Benefits of 80C
The government provides various tax deductions to the citizens and 80C is the most common deduction which allows a maximum deduction of Rs 1.5 lakh every year. It is important to be aware of the various deductions and exemptions available under section 80C and make full use of them.
Not claiming HRA
Another important tax saving option is HRA i.e. House Rent Allowance. HRA is a stipend given to employees by their employers to help them cover their rental expenses. It is essential to know the rules and regulations governing HRA and ensure that one can claim tax savings.
Maintaining Records
Keeping accurate records is an essential part of tax planning. It is important to keep track of all investments, deductions, exemptions, etc. to fully benefit from the various tax saving options available.
