Final minute tax saving ideas for earnings tax 2024. (Picture credit score: Pixabay)

New Delhi: Taxpayers who want to safe deductions beneath the previous tax regime however falling behind on assembly their tax declaration targets have 2 choices — both to chop out cumbersome paperwork and go for the brand new tax regime and pay decrease tax, or observe fast final minute financial savings tricks to safe tax deduction advantages beneath previous tax regime.

The previous earnings tax regime permits a plethora of choices for tax deductions to keen taxpayers. Even if you happen to shouldn’t have enough investments in place, don’t panic. Listed here are choices you might discover to construct a tax deduction portfolio, as shared by CS Mohit Aggarwal, head of Mohit Aggarwal and Associates ( Chartered Accountants).

Donation beneath Part 80G of Earnings Tax Act

Donation to political events

Salaried taxpayers might avail of as much as 100 per cent deduction for donations made to political events recognised by the Election Fee beneath Part 80GGC of the Earnings Tax Act, 1961. These donations are tax-free as much as 100 per cent, offered that the quantity quoted doesn’t exceed the donor’s complete annual wage.

Ram Mandir Belief donation

Donation to the Ram Mandir Belief is eligible for as much as 50 per cent tax deduction beneath the I-T Act. Taxpayers might donate the quantity they deem match to Shri Ram Janmabhoomi Teerth Kshetra Belief for the Ayodhya Ram Temple development and avail deductions beneath Part 80G of the I-T Act.

Purchase an insurance coverage plan

One other profitable alternative to avoid wasting tax is obtainable by deductions on insurance coverage premium funds. Taxpayers can think about shopping for an annuity plan, an instrument that permits them to save cash for the longer term whereas availing tax advantages within the current.

Beneath Part 80CCC of the I-T Act,  a taxpayer who bought an annuity from an authorised insurer can avail of as much as Rs 1,50,000 tax deduction for premium paid. Nevertheless, do notice that annuity is taxable on maturity and the quantity acquired will likely be thought of a part of the person or Hindu Undivided Households (HUFs) taxable earnings.

Medical health insurance

Beneath part 80D of the Earnings Tax Act, taxpayers might avail of as much as Rs 25,000 tax deduction for cost of medical insurance coverage premiums for themselves, partner and youngster.

If the premium paid contains insurance coverage for fogeys under 50 years of age, the deduction is as much as Rs 50,000.

On premium funds for self, partner, youngsters and fogeys aged 60 years and above the deduction allowed is as much as Rs 75,000.

PPF, NPS and ELSS

A taxpayer might bridge their tax saving hole by contributing to any of the above schemes in a lumpsum method. Beneath Part 80C of the Earnings Tax Act, taxpayers might obtain as much as Rs 1,50,000 deduction for funding in a private provident fund. This account could also be opened with an current financial institution with easy KYC.

Fairness equity-linked financial savings scheme (ELSS)

It is a mutual fund designed to offer tax deductions. Traders might park a lump sum of as much as Rs 1,50,000 to avail of the utmost low cost beneath Part 80C. To make certain, the quantity accessible on maturity is taxable beneath the I-T Act.

Nationwide Pension System (NPS)

Taxpayers might avail of a further Rs 50,000 tax deduction on exhibiting contribution to the Nationwide Pension System. This takes the whole deduction coupled with one other scheme to Rs 2,00,000.

Adblock check (Why?)