Tax season 2024, the last month of the current financial year, has started from today. This month the taxpayer has to get his investment verified. Taxpayers have time till March 31 for this. Taxpayers invest in many places to save tax. Let us know what things a taxpayer should keep in mind while saving tax.
New Delhi. To save tax, many taxpayers have started verifying their investment documents. At the same time, many taxpayers have also started tax calculation.
Actually, from today the last month of the current financial year 2023-24, March, has started. This month the taxpayer has to complete many tasks related to tax saving.
Today in this article we will tell you what things taxpayers need to keep in mind to save tax. If he does not take care of these things, he may have to face losses in future.
Tax review
The taxpayer should know what his income is and how much tax he has to pay. For this, taxpayers should review their tax-savings. This ensures that he invests according to his income.
Apart from this, taxpayers get to know after review which tax regime they should select.
Let us tell you that if any taxpayer has changed job in the middle of the financial year, then he has to submit Form 12B under Section 26A.
Tax saving
Let us tell you that taxpayers can avail tax benefit of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. In such a situation, taxpayers should know which investment options get tax exemption under 80C. Let us tell you that the benefit of tax exemption is available on FD, Post Saving Schemes and ELSS.
Apart from this, if investors invest in PPF, they also get the benefit of tax benefits on its returns.
Tax-loss harvesting
Tax-loss harvesting is also a very good option to save tax. In this, long term capital gains up to Rs 1 lakh in a financial year are tax free. However, more than Rs 1 lakh is taxed at the rate of 10 per cent. Let us tell you that in tax-loss harvesting, the taxpayer has to sell shares up to the LTCG limit of Rs 1 lakh. In this way LTCG helps in reducing tax in equity investments.
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