The year is drawing to a close, and it’s time to start thinking about tax planning again! At JJ Tax, we want to ensure you are armed with the knowledge to make smart investment decisions that will help you maximize tax savings before 2023 ends.
This year, why not spice up your usual fixed deposits and debt funds with some equity flavor? With the right equity-linked tax saving instruments, you can lower your tax outgo substantially.💰
So brew some adrak chai, put on your thinking hat, and get ready to explore investment avenues you may not have considered before! Whether you’re a seasoned investor or just starting out, our guide will help you make informed choices to minimize your tax liability.🤔
Top Tax Saving Scheme
EPF: Employees can contribute up to 12% of their basic income and DA allowances towards EPF to avail tax benefits under Section 80C while building a retirement corpus.🏦
PPF: Invest up to Rs. 1.5 lakhs in PPF accounts offering guaranteed tax-free returns to reduce tax liability.💸
ELSS:
Invest in equity mutual funds with a 3-year lock-in period
Offers deductions under Section 80C up to Rs. 1.5 lakhs
Potential for higher inflation-adjusted returns vis-à-vis FDs
Options to invest in a lump sum or through SIPs📊
ULIPs:
Offer life cover plus equity investment under one plan
Avail Section 80C deduction on the amount of premiums paid
Partial or Complete withdrawals allowed after 5 years💡
NPS:
Retirement-focused equity investment scheme
Avail tax benefit under Section 80C up to ₹1.5 lakhs
Additional tax benefit under Section 80CCD (1B) up to ₹50,000
Flexi-withdrawal option available after three years
Low-cost fund management🏦
Other ways of reducing tax liabilities
Donations under 80G: Donations to certain approved charities like PM National Relief Fund, Clean Ganga Fund, Swachh Bharat Kosh etc. are eligible for 100% or 50% deductions.🤝
Capital Gains Planning: Capital gains upto INR 100,000 is exempt from income tax. So, if you hold any long term capital assets such as equity shares or equity oriented mutual funds, then you must plan the sale of these assets in such a manner than the accumulated gains per annum does not exceed INR 100,000.💹
Carry Forward Losses: Offset Current Year losses or brought forward losses against gains, to reduce overall taxable income.📉
Every rupee saved on taxes is extra money to secure your future and lifestyle. So act now to maximize deductions and minimize tax outflow! Need guidance tailored to your unique situation? JJ Tax consultants are always ready to help.
Here’s to a new year with your personal finances in the pink...as our tax tips help double your cash in a wink!💰✨