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Are you one of those people who scurry around every year during the last few days of the year to complete your tax saving investments? There is evidence of increased activity among taxpayers to invest in tax-saving investments to provide proof of tax-saving investments and save taxes. However, for the salaried class, the heightened activity is during the last 3 months before the financial year close \u2013 January, February and March. This rush to save taxes is just before the year end to avail the tax saving benefits. Such last-minute rush always leads to mistakes or haphazard investments which do not align with your financial goals or your risk profile.\u00a0 Here are tips on how to plan your tax-saving investments efficiently.<\/p>\n\n\n\n
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This is one of the most basic deductions applicable to every individual or Hindu Undivided family (HUF). Investments up to Rs. 1.5 lakh per year can be availed as a deduction from your taxable income. Further, an additional Rs. 50,000 is allowed towards investment in NPS under section 80CCD(1B).
The investments allowed under section 80C are an Employee provident fund, public and employee provident and super-annuation fund, term deposit with min. 5 years lock-in, tax-saving bonds, an equity-linked savings scheme, post office deposits \u2013 National Savings Certificates (NSCs), life insurance premiums, school tuition fees, principal repayment of home loans, etc.<\/p>\n\n\n\n