When the end of the financial year comes near, and the process of tax filing begins, all of us get panicked and stress out. Especially when you realize that you have not done proper tax planning efficiently. Different people advice differently when it comes to tax planning, and that can leave you in a lot of confusion. To avoid this situation of stress and to clarify your confusion, you must talk to a financial planner in Pune or any other city which suits you. The expert will give you the right advice based on your financial scenario and keeping in mind your future goals. Tax planning is not only important to make sure this situation never arises, but it also lets you take essential efforts for your financial plans, it gives you an opportunity to consider various investment options available in the market.
Here are a few tax planning tips listed below for you -
A lot of companies offer multiple allowances which can help you save taxes, such as house rent allowance, transport allowance, leave travel allowance, and more. Get in touch with your HR and inquire about these allowances. The reimbursement for a lot of these allowances is not included in your taxable income. So with the help of these, you can save taxes.
Through section 80D, you can get a tax deduction of up to INR 25,000 every financial year with the help of a health insurance premium. Provided, this premium is for you, your wife/husband or your kids. The deduction limit can also go up to INR 30,000 if your spouse is in the senior citizen category.
Charitable deeds and donations are encouraged in the Income Tax Act as it provides tax benefits to all donors under section 80G. This allows you to save tax from your income on the basis of the amount you have given for the donation. The deduction limit varies as per different charitable institutions. Remember, it is important to take receipts from the particular institution with all the necessary details such as your name and amount of donation.
Filing your taxes on time is important because there are a lot of benefits and advantages that you cannot avail if you are delaying your tax payments. Usually, in case of a belated tax return, you will have to pay a certain amount of interest as a penalty as well.
You can also consider ELSS Mutual funds for tax saving, they will help you out as they offer tax benefits through these funds you will get a potential opportunity to begin your investment as well. To understand the benefits of ELSS mutual funds, it is advised that you consult a mutual fund advisor in Aurangabad or any other city across the country. So, instead of panicking at the last moment, make sure you follow all of these tax planning tips.