2024-03-25 04:23:46
Important points about tax saving
Correct Office Records: Salaried people who have chosen the old tax regime should submit all the necessary documents like receipts of investment and expenditure in tax saving schemes like LIC policy, health insurance, PPF, Sukanya Samriddhi Yojana, home-education loan etc. in their office before 31st March. Give. If you do not do this, you will not be able to take back the unnecessary TDS deduction.
Settling Income: If your company is giving exemption, then you can save tax by getting the components of salary (like food coupon allowance, HRA, communication allowance etc.) settled. Understand it like this, you got a bonus, due to that bonus amount your income tax also increased. In such a situation, tax can be saved by putting that bonus amount in the allowance category mentioned above. This work should also be done before March 31, otherwise you will not be able to take advantage of it. For this you will have to contact HR of your company.
Capital Gains: This is the income that is earned by investing the earned capital. If the profit from this is up to Rs 1 lakh then no tax will have to be paid on it. Understand it like you have invested Rs 5 lakh in a mutual fund. Some of these are funds which you bought for Rs 3 lakh. But now his price has increased to Rs 4 lakh. But if you feel that they may become weak in future then sell them. No tax will have to be paid on the income of Rs 1 lakh earned on this. This will not only make the tax zero but will also get rid of weak funds. This benefit will be available only when the investment is 12 months or more old, that is, this benefit is available only on long term capital gains.
If any installment is missed: Suppose you have a home loan or education loan. In such a situation, many times it happens that despite you paying the entire installment, due to some reason the installment does not reach the loan giving bank. For this, the bank from which you have taken loan. Ask him to give you ‘Amortization Schedule’. If you are asking for these details from the bank through email, then definitely write this term in the email. When it arrives, check whether any installment is left. If you have paid the installment and it has not been updated then inform the bank about the same. At the same time, if you have missed any installment, then pay it before March 31. If you pay the old installment after March 31, then you will have to pay extra interest.
Fill old salary details: If you have also changed job in the current financial year, then you will have to fill Form 12B. You will have to fill this form and give it to the existing company. In this form, salary details from the old company have to be submitted. After filling this form, you will get income tax exemption from both the companies i.e. the current company in which you are working and the old company. Failure to do so may result in payment of tax along with interest.
Business people should not forget this
Payment to MSME: If any amount of any firm belonging to Micro, Small and Medium (MSME) category with turnover below Rs 50 crore is outstanding in your balance sheet for more than 45 days after delivery, then settle it before March 31. If the payment remains outstanding till March 31, it will have to be added to the income. This will be considered taxable income.
Advance Tax: Although the last date for filing advance tax was 15th March, but if it can be paid till 31st March also, if this work is not done before 31st then after 31st, interest at the rate of 1 percent per month will have to be paid while filing the income tax return. Suppose, you have to pay tax of Rs 25,000 in the latest financial year. The Income Tax Department has given the facility to pay it in 4 installments. Pay its last and fourth installment before March 31. If even a single installment has not been paid, then pay the entire amount of advance tax before March 31.Updated ITR (ITR-U): Go to (www.incometax.gov.in) and fill the updated income tax return for the financial year 2020-21.
Know these tasks related to finance also
1. Discount on Home Loan: Under the special scheme run by State Bank of India (SBI) for home loans, you can avail the discount before March 31, 2024. This exemption includes home loans for NRIs, flex-pay, non-salaried. SBI is giving home loan at concessional rate to those whose CIBIL score is better.
2. SBI Amrit Kalash Special FD: Invest in SBI Amrit Kalash
The last date to do so is 31 March 2024. According to the SBI website, this scheme with a special tenure of 400 days is offering an interest rate of 7.10% from April 12, 2023. The interest rate for senior citizens is 7.60%.
3. Minimum Investment Deadline: Government contributed savings schemes like PPF or Sukanya Samriddhi Yojana require a minimum deposit of Rs 500 and Rs 250 respectively in a year. If this minimum deposit is not made in any financial year then your account will fall in default category. You will not get much benefit from tax exemption. Complete this work before March 31, 2024.
4. Fastag KYC: If Fastag KYC has not been completed yet, then the National Highway Authority of India (NHAI) has extended its deadline to March 31. If KYC is not done by March 31, Fastag may be blacklisted.
Do KYC like this: First of all, know whether your Fastag has been issued by NHAI or by any bank. To complete KYC of Fastag issued by NHAI, visit www.fastag. Visit ihmcl.com. Click on the place where Login is written on the top right and login by entering the mobile number and OTP. After login, go to profile on the left. Upload the documents by clicking on KYC here. If Fastag is issued by a bank, then you can complete KYC by visiting the bank’s website. Many banks are doing video KYC sitting at home.
5. IDBI Bank Special FD: IDBI Bank Utsav Callable FD is offering interest rates of 7.05%, 7.10% and 7.25% on special tenures of 300 days, 375 days and 444 days respectively. If you want to invest in this scheme, then complete this work before March 31.
6. Updating Nominee: This is a part of KYC. If you have not updated the nominee in your bank accounts, shares, PPF account and other places, then do it before March 31. Apart from this, SEBI has extended the nominee update date in demat account. Now this work can be completed by June 30, 2024.
7. Subsidy on EV vehicle: Subsidy on electric vehicles under FAME-II will not be available after March 31, 2024. The government has not decided to increase it at present. In such a situation, if you want to buy an EV vehicle, then buy it before March 31.
If you are not saving income tax till now then do it like this
If you are in the old tax regime, then the last date to invest in tax saving schemes for the financial year 2023-2024 is March 31. If you have not yet invested to save tax, then you can do the things mentioned below before March 31. If you invest after this date, you will not be able to avail exemption on income tax in the current financial year.
Invest here before 31st March
Public Provident Fund (PPF): In this you can deposit minimum Rs 500 and maximum Rs 1.50 lakh. Currently, annual interest on PPF is available at the rate of 7.10%.
Sukanya Samriddhi Yojana (SSY): If you have a daughter up to 10 years of age, then an account can be opened in her name under Sukanya Samriddhi Yojana in any bank or post office. Currently it is getting interest of 8.20%.
Senior Citizen Savings Scheme (SSY): People above 60 years of age can invest in this scheme. Currently, it is getting interest of 8.20% per annum. In this, you can deposit a minimum of Rs 1000 and a maximum of Rs 30 lakh annually.
National Pension Scheme (NPS): You can get 9 to 12% interest in this. Apart from Section S0C of Income Tax, additional exemption of Rs 50,000 can also be claimed under Section 80CD (1B). Thus, income tax exemption of up to Rs 2 lakh can be claimed on investment in NPS.
Equity Linked Savings Scheme (ELSS): This is a scheme of investment in mutual funds. ELSS funds have a lock-in period of 3 years. Despite long term capital gas tax on returns, this investment is quite good in terms of returns.
Medical Insurance: You can avail tax exemption of up to Rs 25,000 under Section 80D of Income Tax. This exemption for senior citizens is Rs 50,000.
Discounts are available in these also
1. Under Section SOTTA, you can claim income tax exemption on interest up to Rs 10,000 received on your bank’s savings account, post office account, cooperative society/deposit etc.
2. You can claim tax exemption under 80E on payment of interest on education loan for the education of yourself, wife or child.
3. Under Section 24B, tax exemption can be claimed on the interest included in the home loan EMI. If you live in the property yourself then its limit is Rs 2 lakh per year. 4. If you donate to any charitable institution, educational institution or trust notified by the government like the Central Government’s National Defense Fund, Prime Minister’s National Relief Fund (if you donate more than Rs. 2000 in cash, you will not get tax exemption), etc. You can avail tax exemption of 50 to 100% under Section 80G on the amount donated up to 100%.
This is also an option
Apart from these, there are other plans for tax saving. Like- VPF (Voluntary Provident Fund), pension plans of life insurance companies etc. Under these also you can get tax exemption in section 80C.
Expert panel
Sushil Aggarwal, Chartered Accountant
Balwant Jain, Tax Expert
Taresh Bhatia, Certified Financial Expert
Vivek Jain, Chartered Accountant
Vinay Bansal, Chartered Accountant