TIPS FOR SAVING TAX IN FY 2020-21
Subject to your choice of the tax scheme, you can maximize your tax savings in the following ways.
- Invest in Equity-Linked Saving Scheme (ELSS)
- Invest in the National Pension Scheme
- Invest in Sukanya Samriddhi Yojna
- Know When to Opt for the New Tax Regime
- Your total income
- Deductions you are eligible for, and
- Your tax liability
Ways to save on your income taxes
This is not an exhaustive list, but has all the major exemptions. Many other exemptions are eligible in various special situations. As you can see, a lot of these exemptions have limits to cover only your basic needs and expenses. Knowing and understanding these allowances and exemptions is the first step while optimizing your finances.
SAVE TAX WITH THE HELP OF A PROFESSIONAL
While you can file your tax returns by yourself, there are many provisions that you may miss out on. Consulting a tax and financial expert can help you plan your taxes better for optimum utilization of benefits under income tax act.