Don’t Miss This In Your Tax-Planning Before March Ends

Have you still not completed your tax-saving exercise for FY 2022-23??

Hurry up! You have time only till March 31st to do it because if you don’t, your tax liability will be on the higher end!?

The first thing that you need to do is use an income tax calculator to calculate your income. This will give you an idea of how much tax you are supposed to pay and the ways in which you could save it.?

Here are some opportunities you should definitely check out:?

1. Invest In Tax-Saving Instruments:

There are still a couple of weeks left for you to utilize the benefit of tax-saving instruments, such as:

(a) Public Provident Fund (PPF): You can reduce your taxable income by investing in a PPF. You can deposit up to Rs.1.5 lakh per year.

(b) National Pension Scheme (NPS): You can claim a tax deduction of up to Rs.1.5 lakh and an additional deduction of up to Rs.50,000 per year.

(c) Equity-Linked Savings Scheme (ELSS): You can invest your taxable income in ELSS, which will help you in reducing your tax liability.

Make sure you invest before the end of the financial year to claim deductions under Section 80C of the Income Tax Act.

2. Claim All Eligible Deductions:

There are several deductions available under the Income Tax Act that can help you reduce your taxable income. Make sure you claim all eligible deductions, such as medical expenses, home loan interest, education loan interest, and so on.

3. File Your Tax Returns On Time:

If you have any outstanding taxes, make sure you pay them before filing your returns, or else you will have to pay high penalties.

4. Check Your Form 26AS:

Form 26AS is a statement that provides details of any amount that has been deducted as TDS or TCS from various sources of income.

5. Plan For Future

Don’t wait until the last minute to start planning for next year’s taxes. In FY 2023-24, you will have the option to choose between the old and the new tax regime. Experts say that if the total deduction claimed by you in a financial year exceeds Rs 2.5 lakh, then you are better off under the old tax regime.

These are all the options that you can check out. But don’t forget to consult your CA for better answers on how to optimize your tax situation!?

If you have any questions for me, drop them below. I’d be happy to answer!