Plan to Save your TAX….
- Plan to save your taxes at the beginning of the financial year
- Tax planning does not mean tax evasion & it works within the legal framework
- Tax savings can be done through investment in tax saving instruments or by claiming relief on certain expenses like housing loan, Leave travel allowance etc.
- Investment helps in generation of wealth/corpus in long term
- Most popular category for tax benefit is Sec 80 C
- Investor in equity for the first time can claim deduction u/s 80 CCG
- Over declaration with respect to proposed investment in tax saving avenues
- No adequate planning for investment to save tax
- Last minute haphazard investment in tax saving instruments
- Investment in avenues which does not match the goals/requirement
Tax Saving Options
Exemption - Expenses towards rent paid, conveyance charges, leave travel allowance etc. can be claimed under exemptions i.e. Tax Benefit without Investments
- Plan in advance as to how much investment will be required in order to save on taxes
- Investment in tax saving avenues should be done after considering your need/requirement
- Declare/Inform about the proposed tax investments to your company so that the tax deduction at source is done accordingly