Employers need to plan for the full year before the start of the financial year to avoid tax deductions from your salary every year. That is, you have to give information about what you will save tax by investing in.
Employers need to plan for the full year before the start of the financial year to avoid tax deductions from your salary every year. That is, you have to give information about what you will save tax by investing in. In this way HR calculates tax and tells which tax will not be deducted from your salary. All this goes on till December. Then in January mail comes from HR to submit declaration proof. If you fail to submit the proof that proves that you have not invested anything and the tax for the whole year is deducted from the remaining 3 months salary. Sahil asked to invest Rs 1.5 lakh at the beginning of the year but did not.
Now Sahil has three questions
first question, How can Sahil save tax?
Sahil has promised to invest T has to be fulfilled to save tax. The last date for submitting tax proofs to HR is February 15. If Sahil has Rs 1.5 lakh, he can invest and submit the evidence.
second question,If we haven’t invested in the whole year then where can we invest in the last three months?
To save tax, Sahil can invest under income tax section 80C and 80D. This includes education fees of 2 children under 80C, PF, National Savings Certificate, Sukanya Samriddhi Yojana, PPF, Life Insurance Premium, Equity Linked Savings Scheme, home loan EMI share. Under 80D, an additional tax saving of Rs 50,000 can be claimed on premium up to Rs 25,000 for a health insurance policy and Rs 25,000 on purchase of health insurance for parents. If Sahil does not have Rs 1.5 lakh to invest, the tax will be deducted for the entire year in the last 3 months.
Third question What to do if salary is deducted from this tax?
If Sahil does not submit proof of investment, his tax will be deducted. But even after tax deduction, if Sahil completes the investment by March 31, 2023, he can get tax refund by filing ITR.
Let’s save tax this year. But to avoid this happening every year, tax planning should be started at the beginning of the financial year itself. Don’t wait to invest. Even if you make a small investment, you will get good returns from it and there will be no burden of investment.
For more Business updates, Click here.