Plan to Save your TAX….


Summary

  • 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

 

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Common Mistakes

  • 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

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Tips

  • 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