The last date for filing the income tax returns is round the corner, and with the tax season at its peak, we have made things more convenient for you. To make sure you earn some extra bucks filing your tax or invest in finance judiciously, here is a list of some of the tax-saving schemes that one can apply for and make a prudent investment-
- 5-year tax-saving bank fixed deposit
- Term life insurance policy
- Unit Linked Insurance Plan (Ulips)
- Home loan repayment/prepayment
- PPF (Public Provident Fund)
- Health insurance policy
- ELSS (Equity Linked Saving Scheme)
Apart from the above-mentioned schemes, one can also look for the various tax-saving schemes available by various finance companies, banks, and government schemes that the person can opt for and benefit the maximum out of it.
We all are aware of how important it is to pay the tax. However, the question that often makes us worry is how to save tax? Taxpayers are generally aware of the tax-saving deductions that are commonly used. In the FY 2020-2021, one can easily use the tax-saving deductions available under the different sections of the Income-tax Act that will further help the taxpayers bring down their tax liability.
Here is a quick list of the various sections of the Income-tax Act that one can avail and access the various deductions available under it-
- Section 80C
- Section 80CCD (1b)
- Section 80CCD (2)
- Section 80D
- Section 80DD
- Section 80DDB
- Section 80U
- Section 24
- Section 80 EEA
- Section 80G
- Section 80G
- Section 80 TTB
- Section 80E
Apart from the above-mentioned sections, there are special tax deductions available for senior citizens, physically disabled persons, or in case some persons make donations, investments, medical expenses available. The person filing their tax returns can look for the above-mentioned provisions to make things more convenient for you.
However, here is a list of the do’s and don’ts that one needs to keep in their mind while saving tax-
Dos-
- Keep all your documents organized to make things more easy and convenient for you.
- Know about the schemes and the sections that you can apply for depending upon your income slab.
- Choose the correct ITR form while filing your tax returns.
- Never hide your income for doing it may have greater consequences, and you may face legal proceedings as well.
- While filing your returns, calculating your tax liability and how many deductions you can claim is necessary.
- Claiming the deduction based on your investments is a must.
Don’ts-
- Do not make any errors while filling your documents and tax files.
- Make sure you have put all your information correctly; details such as the address, name, and other information should be correctly put.
- Never procrastinate while filling your documents. You may never know when you will miss out on the last date.
Thus, by following the simple tips and choosing the things properly, you can easily save on some extra bucks and claim deductions that you are legally entitled to.