Every year, one of the obligations that a citizen needs to fulfill is the payment of income tax. Income tax rates differ from person to person and depend on their income and profits earned from other sources. Also, the tax rates are different for individuals, senior citizens and corporates. Income Tax Return (ITR) is one of the most essential filing by the taxpayers. While a salaried individual needs to pay his taxes and ITR filing on his prescribed period, however, the government also offers benefits in the form of tax deductions on certain investment instruments which can be claimed to save your taxes. Is.
Since 2023 is the beginning, the sooner you start your tax planning, the more you can save taxes,
As the saying goes, “to be early is to be on time”, said Abhishek Soni, co-founder and CEO of fisdom company Tax2Win. tax planning To save maximum on taxes.
However, it can be confusing while deciding which channel to adopt to save income tax. There are many questions that a taxpayer may face such as how much tax one can save, what is the lock-in period, how many tax deductions are available in income tax sections, especially section 80, or when is the right time to act on your To ensure savings on taxes? And the list of questions goes on!
The answer to these questions are tax saving schemes or plans that help taxpayers save tax while filing their ITR, said CEO of Tax2Win. This ultimately helps in reducing their financial stress by reducing their tax burden through investment in any such financial scheme.
Soni further added that the most popular tax-saving options available are under Section 80C of the Income Tax Act which can help you claim tax deduction of up to Rs 150,000 in a financial year.
Here are some tips under section 80C for 2023:
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Soni suggests investing in the checklist below if a taxpayer is seeking deductions above the limit prescribed in section 80C:
– Section 80TTA: Interest earned on deposits in savings accounts
Section 80E: Payment of interest for repayment of education loan
Section 80D: Premium paid for health insurance policies or medical expenses in case of senior citizens
Section 24(b): Interest paid on home loan.
Section 10(10D): Payment on maturity of life insurance plan.
– Section 80EEA: Repayment of interest on home loan for first time buyers
– Section 10(13A): Deduction on house rent paid (if mentioned in salary break-up)
Section 80GG: Deduction of house rent paid (if not mentioned in salary break-up)
Section 80G: Donations made to charitable institutions.
– Section 80GGA: Donation for scientific research and rural development
Section 80GGC: Donation to political parties or electoral trust.
Section 80DD: Medical expenses for persons with disabilities.
Section 80U: Flat deduction for a person with disability depending on the severity of the disability.
Section 80DDB: Medical diseases.
Section TTB: Interest earned on deposits by resident senior citizens.
Besides this, Soni said that there are many tax filing companies or fintech companies in the market which guide you in saving maximum tax. These companies have introduced several tax planning optimizer tools that can help an individual plan their investments and savings step by step using the recommendations provided by the tools. These tax-saving instruments guide you in choosing the most suitable tax-saving instruments as per your income and risk appetite.
Additionally, he said, these tax filing companies can help you analyze additional deductions that you can take advantage of to get tax relief and more pay in hand.
Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint.
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