Tax Planning Mistakes: To save tax, you should invest with complete planning. Otherwise, you may be deprived of taking advantage of the tax exemption given in the Income Act.
Tax Planning Mistakes: The month of March is considered very important for tax planning. Till March 31, you can take advantage of the tax exemption given by the government by investing at the specified place. But you should be careful in tax planning, otherwise you may stay away from the benefits of tax exemption. Let us know.
Not taking advantage of 80C
Under Section 80C of Income Tax, tax exemption of Rs 1.5 lakh is given to common investors. In such a situation, you should fully utilize the 80C exemption for tax planning. For this, you can get this discount by investing in schemes like Sukanya Samriddhi Yojana, PPF, NSC, and SCSS.
Investing in insurance
Many times people buy insurance policies in a hurry in the month of March for tax planning purposes. This has a very negative impact on finances. Due to investing in the wrong place, you get very less returns. In such a situation, you should never buy insurance in a hurry for tax planning. At the same time, if you are buying insurance to save tax, then plan first.
Insurance premium through credit card
Many people, despite not having savings, pay insurance premium through credit card just to save tax. In such a situation, due to lack of savings, many people default on credit card bills and get trapped in debt. Due to this, many people have to pay more money in the form of interest instead of saving tax. For this reason, investment should be made only when you have money.
Investing for tax saving without planning
If you want to save tax on your income then you should plan in advance. Investing in tax saving products without planning can deprive you of many important tax benefits. For this reason, tax saving should always be done with complete planning.
