People doing their Job as a working professional needs a proper and organized planning to spend the money judiciously. As we have already entered in the year 2023, it is the right time that we start thinking aptly about Tax planning and Income Tax saving.
In order to help you in making the proper plan, here are 6 most crucial suggestions on Income Tax saving so that you can assuage yourself into the procedure.
1. Stay up- to- date
In today’s volatile world, we get new information every day. And this is true for every field in the manner of living that makes it equally important to have an accurate Tax plan in your lifestyle. In this changing world it is important to update yourself with genuine source of information, when it comes to gain idea on the subject matter. This will assist you to remain on top in this subject and you will be able to take the required steps as per the condition and demands.
2. Fair Investments
As you already know a person who earn more than 5 lakhs every year is required to pay tax to the central government. If you are looking for prudent investment decisions that can help you to save the tax in India, these funds will make things easier for you.
- Public Provident Fund (PPF)
- Home loan
- Long Term Capital Gains
- Employee’s Provident Fund (EPF)
- Donations
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3. File Income Tax Returns
If you file your ITR at the end of 31st July annually, the date provided by Income Tax department then this would be great and it will make you pay for all the taxes you are meant to pay only.
4. Health Insurance
Getting Health Insurance will help you financially in medical emergency and also it saves the tax by sharing the money of premium you pay for the same.
5. Tax Regimes
You get two Tax regimes that is new and old one. The new tax will allow you lower tax rates but it doesn’t allow any deductions, on the other hand old tax offers you tax deductions on high tax rates.
6. Right Expenditure
In order to make tax audits, tax payers maintain a proper record of accounts that carry proper record of revenue and expenditures to avoid any unnecessary penalties and other fines.
