The current financial month is about to close and this is the time to declare the Income Tax deduction and exemption related investments. For those of you who are salaried, this is the time when the employers ask you to declare your tax reimbursements claims. While filing the return claims, it is very essential for you to understand that the most common mistake that people make is that they wait until the last moment before filing their deduction claims. If the last date of the current financial year i.e. 31st March gets passed, then the reimbursements cannot be claimed in the current year. While planning to save Income Tax, there are certain things and checklist that you need to keep in mind. The important pointers are as follows:
- Under Section 80C of the Income Tax Act, 1961, the payable premiums towards a life insurance policy are eligible for tax exemption Therefore, while planning your tax calendar make it a point to keep a record of the premium receipts.
- Under Section 80C of the Income Tax Act, any contribution towards PPF or Public Provident Fund is eligible for tax exemption. The PPF account, however, comes with a long lock-in period of 15 years.
- Similarly, under Section 80G, the contributions made towards any scientific institution or religious body or charitable organizations are eligible for tax exemption (the limit of exemption varies, however, from 50% to a full exemption). The contributions made towards governmental funds such as PM's relief fund, also come under this purview.
- The contributions made as repayment in the form of EMIs towards a home loan are admissible for tax exemption.
- Under Section 80C of the Income Tax Act, all the contributions towards NSC (National Savings Certificate) are eligible for tax exemption.
- Under Section 80C, the contributions made towards Sukanya Samriddhi Yojana plan of the government of India are admissible for exemption.
- The health insurance plans and the contributions made as premiums towards the same are also eligible for tax exemption. This exemption comes under Section 80D of the Income Tax Act.
- ELSS or Equity-Linked Saving Schemes are mutual funds that offer diverse investment portfolio and serve as tax-efficient instruments that offer investment in share market and therefore, also offer high returns. Also, the benefit of investing in ELSS is that the lock-in period is three years and this makes ELSS investments ideal for short term financial goals. Contributions towardsÂ an ELSS are eligible for tax exemption under Section 80C up to an upper capping of Rs 1.5 Lac in the current financial year.
HDFC Life offers various saving and investment plans that are aimed at making your monetary reserves grow and to ensure that there is sufficient financial stability for you and your loved ones at all times of requirement. For further details, click on the mentioned link: https://www.hdfclife.com/savings-plans .
Save income tax by 31st March: Here is a checklist