In our hurry to complete the tax-saving exercise before the end of the financial year, we end up making expensive mistakes. Here is a handy guide to set you on the right path.
Many are in the middle of finishing off an important task -- tax-saving. That is right, between the months of January and March is when we have to complete our tax-saving exercise.
In our hurry to complete the tax-saving exercise before the end of the financial year, we end up making expensive mistakes. These include investing in products without weighing the pros and cons properly, and not making full use of the various deductions and exemptions.
However, don't worry, here is a handy guide that can put you one the right track. Here you will find articles, videos, slideshows and even podcasts that will help manage your taxes efficiently, these include making proper use of the various sections of the income-tax Act, financial products and expenditures that can help you save the most tax, and how to go about using your office reimbursements.
Bookmark this page as we will be updating it with tax-saving stories regularly.
Submit these tax-saving proofs to your employer to avoid excess TDS With your company's accounts department knocking on your door to submit your income-tax saving proofs, you will have to gather all the relevant papers. Once the actual proof is submitted, the accounts department will compute the taxes based on the proofs of the actual investments made by you. And for that you will have to furnish the documentary evidence of having actually made the investments as per the investment declaration made earlier.
Tax-saving options under section 80C Section 80C of the Income-tax Act, 1961 is one of the most commonly used tax-saving avenues. There are various investments and expenditures under this section that you can use to save tax. Click here to know all about the tax-saving options available under this section.
Have you done your tax-saving right? While doing your tax savings, you have to make sure that you have done it properly, especially if you are doing it at the last minute. To help you, here are five questions you should answer to check if you are on the right track. If you are not, remember that you still have a couple of months left to take corrective measures.
How employees can make full use of LTA Employees who are eligible for Leave Travel Allowance (LTA), as part of their cost-to-company, can claim reimbursement of expenses incurred on travel. Subject to certain limits and conditions, this reimbursement is not included in one's taxable income. The LTA tax break can be claimed for travel of self and family members for journeys undertaken within India.
What are the top 10 tax-saving options? ET Wealth has ranked the top 10 financial instruments you can use to save tax this year. ELSS funds are again at the top spot, followed by NPS that ranked second. But Ulips have moved up even as small savings schemes, including PPF, NSCs, Senior Citizen's Saving Scheme and Sukanya Samriddhi Yojana have slipped. Click here to read about the top tax-saving options.
How much tax can I save via section 80C?
As per this section, if an individual or Hindu Undivided Family invests in or spends on specified avenues then as per the current laws, up to Rs 1.5 lakh of this investment/expenditure can be claimed as a deduction from gross total income before calculating tax payable on it in a financial year. Click here to find out more about section 80C.
How can I save tax via mutual funds?
Equity-linked savings schemes or ELSS offer tax deduction under section 80C of the Income Tax Act, for investments up to Rs 1.5 lakh in a financial year. You can invest via the SIP route or put in a lump sum amount. Click here to read more about ELSS.
How can I avoid paying excess TDS? You need to submit your tax-saving proofs on time to your employer. The last date for such submissions varies, but most organisations would expect you to submit them by March 10, 2020. However, employers start asking for them in January itself. Read the full story here.