Tax Saving Tips: Taxpayers should do these things before March 31, there will be huge savings in tax...

Now only 4 days are left for the end of the financial year 2023-24. This time the end of the financial year is falling on the weekend. Also, there is the festival of Good Friday on Friday. In such a situation, you have very little time left to save tax (Tax Saving Tips). If you act early, significant tax savings can be made. Let us know how.

File updated ITR by 31st
March 31, 2024, is the last date to file ITR for the financial year. This is also the last date to file updated ITR for previous years also. If you have given incorrect details of your income for FY 2020-21 or 2021-22 or have missed any income then you have one last chance. You can avoid paying more tax later by filing an updated ITR before March 31.

Employee Provident Fund (EPF)
The company deposits 12 percent of your basic salary in EPF every month. This is not only a great way to save tax but is also beneficial for your future.

Public Provident Fund (PPF)
This is a safe scheme of the government. Investment has been made in this for 15 years. After 7 years you can partially withdraw the amount. Currently, PPF offers around 8 percent interest.

Equity Linked Savings Scheme (ELSS)
This is a good option for those who want to take some risk and get good returns. ELSS funds are linked to the stock market. There is a lock-in period of 3 years. In all these options you can avail of tax deduction on amounts up to Rs 1.5 lakh.

Avail tax benefits on buying electric vehicles
Under Section 80EEB of the Income Tax Act, you can claim a maximum of Rs 1.5 lakh on the interest payment on the loan taken on an electric vehicle.

The fourth installment of the advance tax
Payment of advance tax is an important strategy to save income tax. This is applicable for all taxpayers whose annual tax (after deducting TDS/TCS and MAT) is more than Rs 10,000. The deadline for payment of the fourth installment of advance tax was March 15. Now interest will be charged on late payment. Also, payment will have to be made before March 31.

Tax exemption on insurance premium
Taxpayers can take advantage of a significant reduction in their taxable income by claiming a deduction on their health insurance premiums. Deduction of up to Rs 25,000 can be claimed on health insurance. Apart from this, a deduction of Rs 25,000 can also be availed on the health insurance of parents.

Form 12BB
All salaried employees must submit Form 12BB to their employer before the end of the financial year. This form helps you avail tax benefits on your investments and expenses. In this, you can also include HRA, travel concession (LTC) home loan interest payment, etc. The company can use this information to reduce the amount of TDS to be deducted from your salary.

Maintain minimum balance in PPF and NPS account
All PPF and NPS account holders need to deposit the minimum amount in their account before the end of the financial year. Failure to do so may result in account deactivation.

Keep ECS debit details updated
It is important for all those individuals who have paid insurance premiums, SIP, or housing loans through ECS, you check the ECS debit details in their bank account before March 31.

Reduce tax amount with government schemes
Under Section 80C of the Income Tax Act, you can claim up to Rs 1.5 lakh from the total annual income. These include schemes like the Senior Citizens Savings Scheme (SCSS), Sukanya Samriddhi Yojana (SSY) and National Pension System.

Save tax on equity investments
Equity investment can be a good option to save tax. It is also important to have information about the tax applicable on capital gains.

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