Tips to Save Taxes in New Financial Years 2023 – 2024
Welcome to the new financial year 2023 - 2024! It's the perfect time to plan your taxes and save more money. Here are some tips to help you get started.
Invest in tax-saving instruments such as Public Provident Fund (PPF), National Pension System (NPS), Equity-Linked Savings Scheme (ELSS) and Tax Saving Fixed Deposits. These investments provide tax benefits under Section 80C of the Income Tax Act.
Maximize your deductions on home loans. Claim deductions up to Rs. 1.5 lakh under Section 80C for the principal amount and up to Rs. 2 lakhs under Section 24 for the interest payments.
If you have a health insurance policy, maximize the premium payments and claim deductions under Section 80D. You can claim up to Rs. 25,000 for your policy and up to Rs. 50,000 for your parent's policy.
Make use of the deductions on education loans. You can claim a deduction for interest paid on an education loan under Section 80E.
If you are a senior citizen, take advantage of the tax benefits available to you. You can claim deductions for medical expenses and interest income under Section 80D and Section 80TTB respectively.
Make sure to submit your investment proofs to your employer on time if you are a salaried employee. This will help you avoid paying additional tax.
Keep track of all your expenses and investments throughout the year. This will help you plan your taxes more effectively and maximize your savings.
With these tips, you can save taxes and maximize your savings in the new financial year 2024.