Last Minute Things to save your tax as per the new budget, As 31st March is just about to come, we need to find out ways to save our tax deductions & also save our tax liability. This is the right time where we can pursue tax planning & save our tax from being deducted or make investments to save our tax liability.
Here is a list of things you can do to make your money stay with you. This will not just get you tax saving, but also help you to multiply your money for the long term. You will not just be under burdened from paying tax, but will also have some savings for your retirement.The NEW BUDGET 2016 has been kept in mind while updating the below article. Now check more details about “Last Minute Things to save your tax as per the new budget” from below….
Last Minute Things to save your tax as per the new budget
Here are the steps which you can follow:
Step 1: Calculate your projected income:
Be it Income from salary, Business or profession profits, house property income, capital gains or interest or dividend income, you need to sum it up. You can then calculate your tax liability on the same but make sure you calculate it keeping the recent slabs in mind. Also, if you are not sure of the exact amount, you can select a proportionate amount of interest, dividend, etc.
Step 2: Calculate your tax liability:
After finalizing your income, you need to calculate your tax liability. You need to consider the new budget and then consider the basic exemption slabs accordingly. In the recent budget, there are not many changes in the various slabs. Only the rebate under section 87A has been increased from 2000/- to 5000/- for the assesses having income below Rs. 5 Lacs.
Step 3: Check for your investments:
You might have made a few investments like PPF, LIC, etc. during the on-going year. You may also have an on-going housing loan in which you can claim interest & principal deductions. You also might have an education loan, on which you are paying installments, etc. so, now you need to make a list of all your investments & find out the totals.
Step 4: Scope for investments:
Now, you need to find out the balance amount which is possible for you to invest & make sure you have the required funds to invest. You just have 4-5 days in hand, so you need to take steps at the earliest.
Possible Areas of Investment:
The place where you can make sure you have already invested or if you want to do now, you can go for that:
- PPF: You can contribute a max upto Rs. 150,000/- in this investment. The interest rate is between 7 – 8% for this investment.
- FD: There are tax saver FDs for 5 years & 10 years available in which the amount you can invest is a minimum of Rs. 500/- & a max upto Rs. 150,000/-.
- Medi – Claim: Make sure you have a mediclaim insurance. It is not an investment basically, but you get deductions upto 25,000/ &
Rs. 30,000/- (For senior citizens).
- LIC: You have two options here. There are cum bonus plan in which you get your LIC money back. Also, there are other plans which just provide a life cover.
Make sure you make the best use of the available time & plan to make a good deal on your money.
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- List of All Incomes Exempt from Income Tax
- How LIC schemes helpful in Income Tax?
- Section 80GGA – Deduction for Donation – Scientific Research