Producer: Priyanka Das Editor: Aparna Singh
Ignoring sections like 80C of the Income Tax Act, which offers several avenues for tax-saving investments such as PPF, ELSS, NSC, and EPF. Failing to take advantage of these deductions up to the maximum allowable limit (currently Rs 1.5 lakh per annum) means missing out on significant tax savings.
If you are a salaried individual receiving HRA as part of your salary, you can claim an exemption on the rent paid, subject to certain conditions. Failing to submit rent receipts or provide proper documentation to your employer can result in missing out on this valuable tax-saving opportunity.
Premiums paid towards health insurance policies for self, spouse, children, and parents are eligible for deduction under Section 80D. Not availing this deduction can result in higher tax liabilities. Additionally, senior citizens are eligible for higher deductions under this section.
Contributions made to NPS are eligible for tax deduction under Section 80CCD(1B), over and above the limit available under Section 80C. Not availing of this additional deduction can result in missing out on tax savings and a valuable retirement planning opportunity.
Procrastination is costly! Don’t wait till March to invest for tax savings. Early planning allows you to spread investments throughout the year and potentially earn more tax-free interest.