Maximise Your Savings: Top 7 Tax-Saving Tips As FY2023-24 Draws To A Close

From investing in tax-saving options to owing an electric vehicle, here are few tips taxpayers can apply to optimise their fiscal health for the current and upcoming financial years

With the financial year ending on March 31, taxpayers are gearing up to optimise their tax-saving strategies for the upcoming year. As individuals assess their financial standing, it becomes important to seize the remaining opportunities to save on taxes for FY2023-24. As the deadline approaches, taxpayers are urged to review their financial portfolios and take advantage of these tax-saving opportunities to optimise their fiscal health for the current and upcoming financial years.

Making informed decisions regarding investments, government schemes, and charitable contributions can pave the way for significant tax savings while fostering financial security and societal welfare. Here are some vital tips to navigate through the tax-saving landscape:

Invest in Tax Saving Options

To capitalise on tax deductions provided under Section 80C of the Income Tax Act, individuals can explore avenues such as the Employee Provident Fund (EPF), the Public Provident Fund (PPF), and Equity Linked Savings Schemes (ELSS). These options not only enable tax savings up to Rs 1.5 lakh but also offer opportunities for investment growth.

Unlock Tax Savings with Government Schemes

Government schemes such as the Senior Citizen Savings Scheme (SCSS), Sukanya Samriddhi Yojana (SSY), and National Pension System (NPS) provide avenues for optimising returns while availing tax benefits under Section 80C.

Benefits of Owning an Electric Vehicle

Individuals can claim deductions of up to Rs 1,50,000 for interest payments under Section 80EEB by owning electric vehicles, subject to specific criteria.

Maximise Tax Savings with Health Insurance Deductions

Taxpayers can significantly reduce taxable income by claiming deductions on health insurance premiums for self, spouse, dependent children, and parents, amounting to Rs 25,000 each.

Boost Tax Savings through Charitable Donations

Voluntary contributions to charitable causes and organisations, including the Prime Minister’s Relief Fund and certified NGOs, offer tax benefits under Section 80G of the Income Tax Act.

Pradhan Mantri Vaya Vandana Yojana for Senior Citizens

Open for enrolment until March 31, 2024, this scheme provides senior citizens with a steady income in exchange for a one-time investment, offering an annual interest rate of 7.4 per cent for a tenure of 10 years.

Fourth Instalment of Advance Tax Payment

Individuals with net income tax liability exceeding Rs 10,000 are required to pay advance tax in four quarterly instalments. The fourth instalment for FY2023-24 (AY 2024-25) is due on March 15, 2024.