The end of the financial year 2018-19 is fast approaching, and with that begins income tax woes 😉.
Most people keep the task of tax planning hanging till the end of the year. While doing so many of them get trapped in last minute investment ideas, which seems attractive, but actual calculation, they are not.
A proper tax planning can help you to minimize your tax liability with the help of productive investments.The income tax framework allows various deductions under different heads, which can be used to save tax, as well as link same to attractive returns. Some of the most popular heads are described below.
Section 80C (includes section 80CCC): This section allows taxpayers to claim deduction up to Rs.1.5 lakh per year. Under this section one can claim deductions for a huge list of investments; i.e. PPF, EPF, NSC, Postal, ELSS schemes of Mutual Funds, 5year Bank FD,Life insurance policy premium,Tuition fees (school),Home loan principaletc. Investment in these schemes can potentially save taxes worth Rs. 45,000/-.
To know which one is an ideal investment, click here: http://blog.moneyfrog.in/ask-what-else-elss-for-tax-savings-schemes-80cc/