Easily save on last-minute taxes this fiscal year 2022 with these tips

Taxpayers can take advantage of last-minute tax-saving options like medical claims, stock market investments, mutual funds, public provident funds, LIC bonuses, and more before the end of fiscal 2022

Taxpayers can take advantage of last-minute tax-saving options like medical claims, stock market investments, mutual funds, public provident funds, LIC bonuses, and more before the end of fiscal 2022

As we enter the last month of fiscal year 2022, here are some of the quick tax savings options from financial experts for those who still want to reduce their tax burden under the old tax system.

A maximum deduction of ₹1.5 lakh may be used under Section 80C. “Taxpayers should exercise this option before March 31, 2022 and can consider investing in the Public Provident Fund (PPF), which yields 7.1% interest and is also tax-free. Despite having a 15-year lock-up period, PPF is widely regarded as one of the best and safest long-term investment opportunities available today,” said Abhishek Murali, President of the All India Tax Payers’ Association (AITPA).

Those who prefer to invest in the stock markets may consider investing in mutual fund equity-linked savings plans and profiting below 80C, he added.

Other options under 80C include LIC Awards, United Linked Insurance Plan, National Savings Scheme and Sukanya Samridhi Yojana.

Abhishek Murali also said that employees’ share of the provident fund contribution is also covered and the contribution can be increased in case of shortfall to fully utilize the ₹1.5 lakh deduction.

In addition, an additional tax benefit of £50,000 is available under 80CCD(1B) for contributing to the national pension scheme, said Abhishek Murali.

Tax benefits are also available for health insurance under 80D.

“Awareness of medical health insurance is widespread following the emergence of Covid-19. The Income Tax Act allows assessees under the age of 60 to claim up to ₹25,000 Mediclaim for their own health insurance. Additionally, if there is an elderly parent, up to ₹50,000/- can be claimed on Mediclaim or medical expenses,” added Abhishek Murali.

If the taxpayer is a senior, they can claim £50,000 for the Mediclaim premium and medical costs and an additional £50,000 for their senior’s parents, Abhishek Murali noted.

Employees who have failed to claim these exemptions or submit documentation to their employer can make the investment before March 31, 2022 and claim the benefits during their tax return and seek professional advice if necessary.

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