Things to do before end of financial year | Tax Harvesting | 80C | 80D & more Tax Saving Options 

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Before the end of the financial year on March 31st, it's crucial to take certain financial actions to optimize your tax savings and financial planning. Here's an elaboration on each of the mentioned points:
Maximize 80C Investments: Section 80C of the Income Tax Act allows taxpayers to claim deductions up to ₹1.5 lakh in a financial year by investing in specified instruments such as Equity Linked Saving Schemes (ELSS), Public Provident Fund (PPF), National Savings Certificate (NSC), Tax-saving Fixed Deposits, and so on. It's advisable to maximize your investments under this section to reduce your taxable income.
Extra NPS Benefit - Section 80CCD(1B): National Pension System (NPS) contributions qualify for additional tax benefits under Section 80CCD(1B) of the Income Tax Act. Taxpayers can claim an additional deduction of up to ₹50,000 over and above the limit of ₹1.5 lakh under Section 80C by investing in NPS Tier-I account. This can help in building a retirement corpus while saving on taxes.
Health Insurance - Section 80D: Premiums paid towards health insurance policies for self, spouse, children, and parents are eligible for deduction under Section 80D. The maximum deduction allowed is ₹25,000 for individuals and their families (₹50,000 if the taxpayer or spouse is a senior citizen). An additional deduction of ₹25,000 can be claimed for health insurance of parents (₹50,000 if parents are senior citizens). Ensuring adequate health coverage not only provides financial security but also reduces tax liability.
Benefits of Owning an Electric Vehicle: Governments often provide incentives and tax benefits for owning electric vehicles as part of their environmental conservation initiatives. These benefits may include subsidies on the purchase price, lower registration fees, lower road tax, and tax credits. Additionally, electric vehicles offer savings on fuel costs and lower maintenance expenses over their lifetime compared to traditional vehicles.
Tax Harvesting: Tax harvesting involves strategically selling investments such as stocks or mutual funds to realize capital losses, which can be used to offset capital gains and reduce tax liability. This can be particularly useful towards the end of the financial year to optimize tax efficiency in investment portfolios.
By addressing these financial tasks before the end of the financial year, individuals can not only save on taxes but also align their financial planning goals effectively. It's advisable to consult with a financial advisor or tax consultant for personalized advice based on individual financial situations and goals
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