Tax Saving Option: In Budget 2023, Finance Minister Nirmala Sitharaman had announced a new tax regime along with several announcements. This system has come into force from the financial year 2023-24 and it is being brought by default. Therefore, it is necessary to do proper investment planning from now itself to reduce the tax payment at the end of the year. In such a situation, today we are going to tell you some such ways, by which the investor can save tax even in the new year.
- Do investment planning in the beginning itself
To take advantage of the new tax regime, start planning for various investment schemes right from the beginning. With this, apart from saving tax, you also get the benefit of good returns. Taxpayers can opt for Public Provident Fund (PPF), Equity-Linked Savings Scheme (ELSS), National Pension Scheme (NPS) and tax-saving Fixed Deposit (FD). - Invest keeping in mind section 80C
By the way, under the new tax regime, no tax deduction except Standard Deduction is being included. Still investment options like PPF, ELSS, NPS can be availed under section 80C of income tax, subject to a maximum of Rs 1.50 lakh. For this reason, before investing in any scheme, do check whether the benefit of this section is being received or not. - It is necessary to file tax return on time
To avoid paying any penalty or interest, it is important that taxpayers file their tax returns on time. For information, let us tell you that the last date for filing income tax return for any person is 31 July. - Choose tax system according to benefits
Before choosing any kind of tax system, keep in mind that which is going to benefit the taxpayer more. For example, if a person does not have much investment, then in this situation it is considered correct to go to the new tax regime, because in this income up to 5 lakhs, no tax will have to be paid.
On the other hand, if a taxpayer has expenses like home loan, education loan, life insurance, health insurance, then it is right for him to keep in the old tax regime, because in this the taxpayer gets many tax exemptions like 80C, 80CCD, standard deduction meets.
