The deadline for the tax savings exercise for the current financial year, 2023-24, is March 31, 2024. Remember, a penny saved is a penny earned. For this, tax planning is your weapon to dodge the tax bullets and boost your bank balance. The Income Tax Act offers numerous opportunities for your investments, savings, and expenses.
Business Standard delves into some effective strategies that will help mitigate your tax liabilities:
Home loan advantages for tax savings
Tax deductions through health insurance
Investing in a health insurance policy not only secures your well-being but also provides financial benefits in the form of tax deductions. Under Section 80D, taxpayers can deduct the premium amounts paid from their taxable income, with the deduction amount varying based on the age of the insured individuals.
Investing in government schemes for tax relief
Life insurance plans
Life insurance plans offer a twofold advantage – financial security and tax savings. Premium payments towards these policies are deductible under Section 80C, while proceeds received upon maturity or the policyholder’s death are exempt from tax under Section 10(10D), subject to conditions.
Beyond Section 80C
In addition to the well-known deductions under Section 80C, the Income Tax Act provides other sections for further tax relief. For instance, medical insurance premiums can lead to deductions under Section 80D, with specific limits based on the insured’s age and relationship to the policyholder. Interest on home loans and education loans also qualifies for deductions under Sections 24, 80EE, and 80E, providing further avenues to reduce your taxable income.
Tax deductions for donations
First Published: Mar 12 2024 | 4:09 PM IST