Deadline Alert: 10 Vital Tax-Saving Steps Before March 31

As you know, the financial year ends on March 31, 2024. Therefore, it’s a good time to take smart steps to save on your taxes. While you may be planning your taxes for the next financial year, there are some easy things you can do before this financial year ends to take advantage of tax-saving opportunities.

Here are 10 things you can do before the end of the current financial year to assist you in saving taxes.

File Updated ITR Before the Deadline

You might be surprised to know that March 31, 2024, is not only the deadline for filing ITR for FY23-24 but also the final date for submitting updated ITR for previous years. If you have provided incorrect details of your income for FY20-21 or FY2021-22, you still have an opportunity to submit updated ITR before March 31, 2024, and avoid paying additional taxes later on.

Smart Investment Options for Tax Saving

Investing for tax-saving purposes before March 31 is a great strategy. There are several excellent options available under Section 80C of the Income Tax Act. Let’s discuss some popular options:

Employee Provident Fund (EPF):?EPF is not only a fantastic way to save on taxes but also beneficial for your future.

Public Provident Fund (PPF):?PPF is a safe government scheme where investments are made for 15 years, and you can partially withdraw after 7 years. Currently, PPF offers an interest rate of around 8%.

Equity Linked Savings Scheme (ELSS):?ELSS is a good option for those who want to take some risk for better returns. It is linked to the stock market and has a lock-in period of 3 years.

All these options offer tax deduction benefits of up to Rs 1.5 lakh, and they are also an excellent way to boost your investments.

Claim Tax Benefits on Purchasing Electric Vehicles

Under section 80EEB of the Income Tax Act, you can claim a deduction of up to Rs 1.5 lakh on the interest paid on loans taken for purchasing electric vehicles.

Fourth Installment of Advance Tax

Paying advance tax is an important strategy for saving taxes. It applies to all taxpayers whose annual tax liability (after TDS/TCS and MAT deductions) exceeds Rs 10,000.

The deadline for paying the fourth instalment of advance tax for FY2023-24 was March 15, 2024. If you missed this date, you will now incur interest on late payment, and the remaining amount must be paid before March 31, 2024.

Avail Tax Deduction on Insurance Premiums

Taxpayers can avail a notable reduction in their taxable income by claiming deductions on health insurance premiums. By covering health insurance for oneself, spouse, and dependent children, a deduction of up to Rs 25,000 can be claimed. Moreover, if premiums are also paid for parents’ health insurance, an additional deduction of Rs 25,000 is eligible.

Submit Form 12BB

It’s essential for all salaried employees to submit Form 12BB to their employers before the end of the financial year. This form helps you avail tax benefits on your investments and expenses, including HRA, LTC, home loan interest payment, etc. Your employer can then adjust the TDS deducted from your salary based on this information.

Deposit the minimum amount in PPF and NPS accounts

It’s crucial for all PPF and NPS account holders to deposit the minimum amount in their accounts before the end of the financial year. Failure to do so can lead to account inactivity.

Keep ECS Debit Details Updated

It is essential for all individuals who have made payments for insurance premiums, SIPs, or housing loans via ECS to check their bank account’s ECS debit details before the financial year’s end.

Save Taxes with Government Schemes

Under Section 80C of the Income Tax Act, you can claim deductions of up to Rs 1.5 lakh from your total annual income. Let’s learn about some government schemes where investing can help you save tax:

Senior Citizen Savings Scheme (SCSS):?This scheme is specially designed for senior citizens aged 60 years or more. It offers an attractive interest rate and provides tax-saving benefits.

Sukanya Samriddhi Yojana (SSY):?This scheme aims to secure the education and future of girl children. You can invest in this scheme in your daughter’s name until she reaches the age of 10. This scheme also offers tax-saving benefits.

National Pension System (NPS):?This scheme helps you build a strong financial future after retirement. Additionally, investments in NPS provide tax deduction benefits.

Save Tax on Equity Investments

Equity investment can be a good option for saving taxes, but it is essential to have information about the tax on capital gains as well.

In summary, completing these 10 tasks before March 31 is crucial for your financial well-being. Act now to stay on top of your responsibilities and secure a brighter future.

That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!

The article is for information purposes only. This is not an investment advice. Disclaimer:?Teji Mandi Disclaimer