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Now only 4 days are left for the end of the financial year 2023-24. This time the end of the financial year is falling on a weekend. Besides, there is also the festival of Good Friday on Friday. In such a situation, you have very little time left to save tax. If you act early, significant tax savings can be made. Let us know how.
File updated ITR by March 31.
The last date to file ITR for the financial year is March 31, 2024. This is also the last date for filing updated ITR for previous years. If you have given incorrect details of your income for FY 2020-21 or 2021-22 or have missed any income then you have one last chance. By filing updated ITR before March 31, you can avoid paying more tax later.
Employees Provident Fund (EPF)
The company deposits 12 percent of your basic salary in EPF every month. This is not only a great way to save tax but is also beneficial for your future.
Public Provident Fund (PPF)
This is a safe scheme of the government. Investment has been made in this for 15 years. After 7 years you can withdraw the amount partially. Currently, PPF offers around 8 percent interest.
Equity Linked Savings Scheme (ELSS)
This is a good option for those who want to take a little risk and get good returns. ELSS funds are linked to the stock market. It has a lock-in period of 3 years. In all these options, you can avail tax deduction on amount up to Rs 1.5 lakh.
Avail tax benefits on buying electric vehicles
Under Section 80EEB of the Income Tax Act, you can claim a maximum of Rs 1.5 lakh on interest payments on loan taken on an electric vehicle.
Fourth installment of advance tax
Payment of advance tax is an important strategy to save income tax. It is applicable for all taxpayers whose annual tax (after deducting TDS/TCS and MAT) is more than Rs 10,000. The last date for payment of the fourth installment of advance tax was March 15. Now interest will be charged on late payment. Also, payment will have to be made before 31st March.
tax exemption on insurance premium
Taxpayers can benefit from a significant reduction in their taxable income by claiming a deduction on their health insurance premiums. Deduction of up to Rs 25,000 can be claimed on health insurance. Apart from this, a deduction of Rs 25,000 can also be availed on health insurance of parents.
Form 12BB
All salaried employees must submit Form 12BB to their employer before the end of the financial year. This form helps you to get tax benefits on your investments and expenses. In this you can also include HRA, travel concession (LTC), home loan interest payment etc. The company can use this information to reduce the amount of TDS to be deducted from your salary.
Maintain minimum balance in PPF and NPS account
All PPF and NPS account holders must deposit the minimum amount in their account before the end of the financial year. Failure to do so may result in account deactivation.
Keep ECS debit details updated
It is important for all those individuals who have paid insurance premium, SIP or home loan through ECS, that you check the ECS debit details in your bank account before March 31.
Reduce tax amount through government schemes
Under Section 80C of the Income Tax Act, you can claim up to Rs 1.5 lakh from the total annual income. These include schemes like Senior Citizens Savings Scheme (SCSS), Sukanya Samriddhi Yojana (SSY) and National Pension System.
Save tax on equity investments
Equity investment can be a good option to save tax. It is also important to be aware of the tax levied on capital gains.