Suspense Crime Sach Ka Dam
If you have just started a job or your income has just started, then you should understand that at a certain time, your employer (company) can demand an investment declaration form i.e. documents related to your tax savings. In such a situation, you should be prepared for your tax savings from now itself and take the right steps. Older employees are undoubtedly able to take immediate steps, but young people starting a job have to understand a little. In such a situation, here we discuss smart investment instruments that save tax so that you can get some help.
You can consider investing in ELSS.
ELSS or equity-linked savings schemes are equity mutual funds with a diversified portfolio that allow you to invest in the equity markets along with high returns. According to HDFC Life, it also allows you to claim tax deductions under Section 80C of the Income Tax Act. The maximum amount of income tax deduction that can be claimed from the government is fixed at Rs 1.50 lakh in a financial year.
Buy health insurance
In today’s time, getting treatment is very expensive. In such a situation, keeping in mind the rising cost of medical care, it would be better if you buy a good and better-covering health policy. The health insurance policy covers the financial risk associated with any medical emergency or the expenses incurred in hospitalization. This will give you mental peace about the big expenses incurred in a medical emergency. You get tax exemption under section 80D of the Income Tax Act for the amount of health policy premium paid in a year.
Here it is to be understood that the amount of deduction for paying premium on insurance for yourself, dependent children, and spouse can be up to Rs 25,000. An additional Rs 25,000 can be claimed for parents. Yes, if your parents are senior citizens then the total limit can increase to Rs 1,00,000.
Make an investment plan even if you are not in your tax slab.
Even if your income is not within the tax slab, consider financial planning. TDS may be deducted from your income, which you should not pay as you have income within the limit. In such a case, you will have to file your ITR to get it back as a refund. Also, start investing according to your goals. Always set a clear objective while starting an investment and choose the right amount, period, and type of investment based on it. The sooner you start investing, the more benefits you will get. You should ensure that you do not miss the deadline for filing income tax returns. Usually, July 31 every year is the last date. Consider filing your returns in advance and double-checking them to avoid any kind of mistakes.
Seek help from professionals if needed.
When it comes to investments, taxes, and insurance, it helps to have a basic understanding. You should have a basic understanding of the technical terminology and concepts related to taxes and investments so that you can make the right decision. However, if you feel you are a novice, you can consult a tax advisor, investment advisor, financial planner, etc. to help you plan your financials and file taxes.
Minimum income on which income tax is not levied
If your annual income is within the income limit of Rs 2.5 lakh under the old tax regime and Rs 3 lakh under the new regime, you are exempt from paying tax. If it exceeds this amount, you can make investments that are eligible for deduction under Section 80C.
