Income Tax 2023: 6 Tax Saving Tips Taxpayers Should Use Before FY 2022-23 Ends

As the current fiscal year ends on March 31, 2023, taxpayers have already begun making investment plans for the following one. While preparing for future taxes is essential, following a few straightforward procedures by the end of the month can also assist people in reducing their tax obligations.

Taxpayers are running out of time to benefit from tax deductions as the fiscal year (FY 2022-23) draws to a close. It should be mentioned that people can save a lot of money by taking some straightforward actions, such as making investments.

Prior to the deadline, it is important to keep the following list in mind in order to maximize this opportunity:

• Investing in ELSS, PPF, NPS, EPF, tax-saving fixed deposits, and other instruments under section 80C entitles taxpayers to a deduction of up to Rs 1, 50,000.

• Another wise move to save taxes is to make an investment in the National Pension Plan (NPS). In addition to the section 80C total limit of Rs. 1.5 lakhs, taxpayers may deduct an extra Rs. 50,000.

• Taxpayers may deduct up to Rs 25,000 of the cost of their own health insurance as well as the premiums for their spouses and dependent children. In addition, taxpayers are permitted to deduct an additional Rs. 25,000 for their parents. Under both categories, senior folks may claim up to Rs. 50,000.

• Taxpayers may deduct the interest paid on a loan up to Rs 1,50,000 if they are thinking about buying an electric vehicle.

• To lower their tax obligation, taxpayers can take advantage of tax savings on the mortgage that include both principal and interest payments. In accordance with several parts of the Income Tax Act, home loans are eligible for tax benefits up to Rs. 1,50,000 under Section 80C and up to Rs. 2,00,000 under Section 24B, Rs. 50,000 under Section 80EE, and Rs. 1,50,000 under Section 80EEA.

• Finally, taxpayers ought to think about paying their taxes early. They must pay the advance tax if the total tax due—net of TDS—exceeds Rs 10,000 in order to avoid being charged interest.

The New Income Tax Slab 2023: