As the financial year approaches its end, now is the time for individuals to take proactive steps to save on taxes and maximize refunds. There are several strategies that can help reduce tax liability before the March 31st deadline.
One of the easiest ways to save on taxes is by investing under Section 80C. Taxpayers can claim up to ₹1.5 lakh by investing in financial instruments such as:
Those who have not yet utilized this limit should consider making investments before the deadline.
Purchasing health insurance can also help reduce tax liability. Under Section 80D, individuals can save up to ₹25,000 on insurance premiums for themselves and their families. If covering parents as well, the deduction can go up to ₹50,000. Additionally, preventive health check-ups up to ₹5,000 are also eligible for tax benefits.
Taxpayers paying a home loan can benefit from deductions on both the interest and principal amount. The interest component qualifies for a deduction of up to ₹2 lakhs, while the principal repayment is eligible for deductions under Section 80C.
For those looking to save even more, investing in the National Pension Scheme (NPS) is a viable option. Apart from the ₹1.5 lakh deduction under Section 80C, NPS contributions provide an additional tax benefit of ₹50,000. This makes it a great strategy for both tax savings and retirement planning.
Donations made to government-approved charitable organizations qualify for deductions under Section 80G. This enables individuals to contribute to social causes while reducing their tax burden, making it a win-win situation.
By utilizing these simple yet effective strategies, taxpayers can significantly reduce their tax bills and secure higher refunds. However, it is crucial to complete all necessary investments and filings before March 31st to maximize benefits.
Taking these proactive steps ensures smarter financial planning and better tax management.