Smart Tax-Saving Strategies for Individuals in 2024
Even for salaried professionals, it is possible to manage one’s taxes proactively. A little planning during the financial year can bring in hefty savings. Here are some practical tips recommended by CAs:
Maximize Sec 80C Deductions upto ₹1.5 lac: Utilize the limit of ₹1.5 lac available under Sec.80C. Popular avenues are ELSS mutual funds-3 yr lock-in, growth potential; PPF accounts-15 yr lock-in, safe returns; life insurance premiums; and home loan principal repayments. ELSS funds often outperform conventional alternatives and have shorter lock-in.
Don’t overlook Section 80D: The premium paid for health insurance is allowable as a deduction to the extent of ₹25,000 in respect of self/family; ₹50,000 extra for senior citizen parents. The limit also covers expenses incurred for preventive health checkups to the extent of ₹5,000. Insuring your family not only provides for coverage but cuts your taxable income.
HRA and Home Loan Benefits: Claim HRA exemption if you are living in rented accommodation by providing the rent receipts. Even if your landlord is a close relative, it still qualifies. If you own a house on loan, avail the benefits of home loan interest-up to ₹2 lakh under Section 24(b)-and the principal repaid under 80C.
Education Loans under Sec 80E: Interest on education loans taken for higher studies for self, spouse or children is fully deductible without any limit. This benefit extends up to 8 years or the repayment of loan, whichever is earlier.
Choose the Correct Tax Regime: The new tax regime (with low slab rates and no most deductions) is not always optimum. Compare Scenarios: In case your deductions (like 80C, 80D, HRA etc.) are more than approximately ₹2.5–3 lakh, the old regime may result in more savings. Use online calculators or take the help of a professional CA in order to choose the optimum regime for your income level.
Other Tips: Do not forget to consider Section 80G for donations, 80TTA for interest on savings accounts up to ₹10,000, or 80TTB for interest of senior citizens, as applicable. Contribute toward NPS under Section 80CCD(1B) for an additional ₹50,000 deduction.
Tax planning is not about evading tax but about taking full advantage of the incentives provided by the law. As this CA-authored guide concludes, consulting a qualified professional can tailor these strategies to your situation.
Our Income Tax services at GVC will afford you personalized advice through reviewing your salary structure, investments, and expenses with a view to maximizing refunds. We stay updated on changes-for example, new deductions or limits-so that you derive full benefit. Act now to save your hard-earned money. Contact Gupta Varun & Co. to discuss your tax plan for the year and make the most of every rupee legally saved.
