Income Tax (I-T) Saving Of Up To Rs. 45,000 Before March 31, 2018

Income Tax (I-T) Saving Of Up To Rs 45,000 Before March 31, 2018If you have not made any investments in this financial year (2017-18), there are still a few more days to do so. As there are ten more days before the financial year draws to a close, you can invest in any of the notified schemes mentioned under section 80C of the Income Tax (I-T) Act to save some money by slashing the tax outgo. Any investments that you have made in the current financial year will entitle you for tax exemption in this year.

(Also Read: How To File Income Tax Returns In Three Steps By March 31, 2018)

Even if you have paid income tax as your share of TDS (tax deducted at source) via your employer, you will be eligible for a refund from the income tax department after the filing of income tax returns. Over and above of the Rs. 1.50 lakh deduction allowed under section 80C of the Income Tax Act, 1961, one can claim an extra exemption of Rs. 50,000 by making investments in the National Pension System (NPS). A tax payer can claim thus claim exemption of up to Rs. 2 lakh on the total taxable income by investing in NPS.

(Also Read: Details Of 5-Year Tax-Saving Fixed Deposits (FD) Of SBI, HDFC Bank, ICICI Bank, Axis Bank)

By making investments of up to Rs. 1.5 lakh, one can save tax, depending on the tax slab one falls under. In case one falls under the bracket of 5% per cent, his/her tax saving would be Rs. 7,500. In case of the 20 per cent tax bracket, the tax saving would be Rs. 30,000.

(Also Read: 10 Latest Details On Filing Of Income Tax Returns)

In case of the 30 per cent tax bracket, tax saving would be 30 per cent of Rs. 1,50,000, which is Rs. 45,000. One can add to it the saving on 4 per cent cess that will lead to further savings.

(Also Read: New To Investments? Five Things To Know To Avoid Taking A Wrong Call)

Exemptions Under Section 80C of the I-T Act include, but are not limited to:

1. Investment in public provident fund (PPF): Employee’s share of PF contribution.
(Also Read: Advance Income Tax Payment For FY18: Last Date, Details, Mode Of Payment)

2. National saving certificates (NSCs)
(Also Read: Submitting Forms 15G/15H Online In 5 Simple Steps)

3. Life Insurance Premium payment

4. ULIPS (united linked insurance plan)

5. ELSS (equity linked saving schemes)

6. Sum paid to purchase deferred annuity

7. Five year deposit scheme

8. Senior Citizens savings scheme

9. Subscription to notified securities/notified deposits sche

10. Contribution to notified Pension Fund set up by Mutual Fund or UTI.