Opted for the old tax regime? NPS to Bank FD. Effective income tax savings can be accomplished by strategically utilizing various avenues, provided they are planned accurately.
Income Tax Saving Investments for taxpayers
If you intend to make Income Tax Saving investments, it’s vital to first determine the required investment amount.
Taxpayers wanting to have income tax savings must consider avenues such as the Employees’ Provident Fund, life insurance premiums, tuition fees, home loan principal repayments, and others, as these qualify for deductions of up to ₹1.5 lakh under Section 80C.
Income tax allows exemption and deduction of certain Income Tax Saving investments made during the year. As the financial year 2023-24 is about to end, individual taxpayers need to make income-saving investments before March to claim the benefit in the Income Tax Return.
A look at the last-minute income tax saving options!
Section 80 C (PPF, Bank FD, ELSS)- When time is crucial, tasks may appear discouraging, but there’s still a way forward. Evaluate your existing income 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 regulate the remaining amount to be invested for tax-saving purposes u/s 80C,” according to the CEO and Co-founder of Tax2win, Abhishek Soni.
People opting for the old tax regime can invest in LIC/PPF/ Fixed deposit/Tax saver mutual fund etc. in case the limit of 1,50,000/- is not exhausted u/s 80C, said Hitesh Jain, Associate Partner, Direct Taxes, N.A. Shah Associates. ELSS funds, PPF, NPS, and fixed deposits are some of the popular options under section 80C.