Tax Savings Options: There are only a few days left for tax savings. If you want to save tax for FY 2024-25, then you will have to do some work before 21 March. You can make great savings on taxes through some investments by 31 March 2025. However, the benefit of tax savings is available only under the old tax system.
Tax savings under Section 80 (C)
Cuts can be claimed by investing in certain investment options under Section 80 (C) of the Income Tax Act, 1961. This includes ELSS, Sukanya Samriddhi Yojana, PPF, life insurance policies, tax savings FD schemes of banks. In addition, you can also claim deduction on tuition fees of your children. By investing in this investment option, you can claim a maximum cut of Rs 1.5 lakh.
This investment should be made by 31 March.
According to tax experts, if you have not yet invested tax-spent investments, you should do so by 31 March 2025. Do not only invest as a measure of tax-saving, but invest in options that can help you meet your future financial goals. You can also avail tax deduction of up to Rs 1.5 lakh by investing in a tax saving scheme (ELSS) of mutual funds.
Investment in NPS
If you work in the private sector, you can invest 10 percent of your basic salary in NPS. In which tax exemption is received under Section 80 CCD (1). According to Section 80 (C), its limit is only 1.5 lakh rupees. In addition, an additional Rs 100,000 can be invested in NPS under Section 80 CCD (1B). You can also avail tax exemption on investment of Rs 50,000.
Exemption under Section 80 (D)
If you have not purchased a health policy, you can buy before 31 March. You can get tax exemption on its premium. This will also reduce tax liability. Under Section 80 (D) of the Income Tax Act, any person can claim tax exemption on the premium of the health policy purchased for himself and his family (spouse and two children). If you are under 60 years of age, then the premium will be Rs 100. Premium 1000 for those above 25,000 and over 60 years of age. A discount of up to Rs 50,000 can be availed. Apart from this, parents can also get a discount of Rs 1000 on their premium by purchasing health policy. You can avail tax exemption up to Rs 50,000. However, the age of parents should be more than 60 years.
