This FY2022, save tax in the last minute easily with these tips

File photo for representation

File photo for representation

As we are into the last month of the financial year 2022, here are some of the quick tax saving options from financial experts for those who are still looking to reduce their tax burden under the old tax regime.

Under Section 80C a maximum of ₹1.5 lakh deduction can be utilised. “Tax payers should utilise this option before March 31, 2022 and can consider investing in Public Provident Fund (PPF) which yields 7.1% interest and is also tax free. Though there is a 15-year lock-in period, PPF is widely considered as one of the best and safest long term investment opportunities available today,” Abhishek Murali, president, All India Tax Payers’ Association (AITPA) said.

Those who prefer investing in stock markets can consider investing in Equity Linked Savings Scheme of Mutual Funds and take benefit under 80C, he added.

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

Abhishek Murali also said that the salaried employees’ share of contribution towards Provident Fund is also covered, and the contribution can be increased in case of any shortfall to avail the ₹1.5 lakh deduction in full.

In addition, an additional ₹50,000 tax benefit is available under 80CCD(1B), for a contribution towards National Pension Scheme, said Abhishek Murali.

Tax benefit is also available towards medical health insurance under 80D.

“Awareness of Medical Health Insurance has become wide-spread after the emergence of Covid-19. The Income Tax Act allows Assessee’s under the age of 60, to claim Mediclaim upto ₹25,000 on their own medical insurance. Further, if there is any senior citizen parent, upto ₹50,000/- on the Mediclaim or medical expenses can also be claimed,” Abhishek Murali added.

If the taxpayer is a senior citizen, then they can claim ₹50,000/- for the Mediclaim premium and medical expenses and an additional ₹50,000/- for their senior citizen parents, noted Abhishek Murali.

Salaried persons who have missed claiming these exemptions or submitting the documents to their Employer, can still make the investment before March 31, 2022 and can claim the benefits during their return filings and take professional guidance if necessary.

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Printable version | Jun 25, 2022 4:12:30 am |