Last-Minute Tax Saving Tips: Expert Advice to Maximize Your Savings
Tax season is upon us, and for those who haven’t completed their tax-saving tasks yet, time is of the essence. The deadline for tax-saving investments is just around the corner, prompting individuals to explore various avenues to optimize their tax savings. Here are some expert tips to help you make the most of this opportunity.
Tax Saving
Exploring Tax-Saving Options
Tax experts recommend considering investments in ELSS, PPF, or purchasing health insurance to maximize your tax savings before the looming deadline. Each of these avenues presents a unique opportunity to optimize your tax liabilities effectively. It’s crucial to compare the tax benefits between the new and old tax regimes to make informed decisions.
Insights from Tax Experts
Paramjit Khanna, a Senior Partner at M/s P. N. KHANNA and Co Chartered Accountants, highlights key deductions available to taxpayers. He mentions, “Payments to LIC, post office investments, PPF, Sukanya Deposit Scheme, etc., are eligible for deductions up to Rs 150,000 under section 80C. Additionally, payments up to Rs 50,000 in NPS qualify for deductions under section 80CCD. Assessees can also claim deductions for mediclaim policy premiums up to Rs 30,000 under section 80D, with higher limits for senior citizens above 60 years of age.”
Maximizing Deductions
Apart from the aforementioned deductions, taxpayers can benefit from section 80TTA/80TTB deductions for bank interest and section 80G deductions for charity payments. It’s essential to note that the total claim is subject to restrictions based on total income for the fiscal year.
Avoiding Hidden Expenses
Tax experts emphasize the importance of considering interest on tax as a hidden expense. Failing to pay adequate advance tax can lead to accruing interest, which may go unnoticed until the time of filing returns. Conducting a comprehensive assessment of your tax liability before 31st March 2024 can help save on interest charges.
Leveraging Tax Exemptions
Individuals are advised to review their utilization of tax exemption limits under various sections like 80C, 80CCD (1B), and 80D. If there is room for further investments, it’s advisable to capitalize on tax-saving opportunities even towards the end of the financial year.
Philanthropic Opportunities for HNIs
High Net Worth Individuals (HNIs) with philanthropic inclinations can contribute to designated charitable institutions under Section 80G. By donating before 31st March 2024, they can claim deductions of up to 100% on their contributions.
Conclusion
As the tax-saving investment deadline approaches, individuals are urged to assess their tax-saving strategies meticulously to optimize their savings and minimize tax liabilities. By leveraging the insights and recommendations provided by tax experts, taxpayers can navigate the complexities of tax planning effectively.
By Lola Reynolds
