Income Tax: These mistakes in tax planning will prove costly, instead of saving money you will have to pay more tax

Tax Planning Mistakes: The month of March is considered very important for tax planning. Till March 31, you can take advantage of the tax exemption given by the government by investing at the specified place. But you should be careful in tax planning, otherwise you may be deprived of the benefit of tax exemption. let us know.

Not availing the benefit of 80C

Under Section 80C of Income Tax, common investors get tax exemption of Rs 1.5 lakh. In such a situation, you should make full use of 80C exemption for tax planning. For this, you can get this discount by investing in schemes like Sukanya Samriddhi Yojana, PPF, NSC and SCSS.

investing in insurance

Many times people buy insurance policies in a hurry in the month of March for tax planning. This has a very negative impact on finances. Investing in the wrong place gives you very low returns. In such a situation, you should never buy insurance in a hurry for tax planning. At the same time, if you are buying insurance to save tax, then plan first.

Insurance premium through credit card

Many people pay insurance premium through credit card just to save tax despite not having savings. In such a situation, due to lack of savings, many people default on credit card bills and get stuck in debt. Due to this, many people have to pay more money in interest instead of saving tax. For this reason, investing should be done only when you have money.

Investing to save tax without planning

If you want to save tax on your income then you should plan in advance. Investing in tax saving products without planning can deprive you of many important tax benefits. For this reason, tax saving should always be done with complete planning.