Proof Submission activity for FY 2018-19 is just around the corner and you must already be assessing various tax saving investment options under Section 80C. With focus being on exhausting 80C limit, it’s highly possible that you end up investing in options that are not suitable for you.
Here are the Key Points to Note:
- Calculate your tax liability before investing to know the scope of saving tax u/s 80C
- Check how much you have already contributed or need to contribute towards your existing commitments this year
- Link your tax saving plans with your financial goals
- Evaluate various products in terms of financial need, diversification and return on investment
- Do not restrict tax saving only to investing under Sec 80C
Proof submission activity gives you the right opportunity to not only assess options u/s 80C, but also to go beyond and explore all possible tax saving strategies available to you within the Income Tax laws.
TaxSpanner has a vast experience in tax optimization of salaried taxpayers. Over the last 8 years, we have helped thousands of our customers save lakhs of rupees every year. Times of India – India’s largest media and entertainment group, also trusts our expertise in tax management. In this latest article in TOI, our CFO, CA Sudhir Kaushik guides the taxpayers on how to optimize tax through better planning of income and investments.
In this context, we can recommend you additional tax savings to slash your tax outgo by upto 50%. However, if we help you save only Rs. 3,000 per month (Rs. 36,000 annually) in TDS, your compounded tax saving by the time you retire, would be in lakhs or even a crore. Below table can help you find out your potential tax savings by referring to the years left for your retirement and TDS in your salary slip.