Tips to save Tax in FY 2018-19

Every year, around the middle to end of February, we run through various options to save tax.

In the hurry to save tax, we may end up making unsuitable decisions or paying more than you should. So, it’s always better to plan and execute your tax saving well in advance.

What usually keeps us at bay is the notion that it is a boring or difficult chore. But with a little knowledge about various investments/expenditures/payments which can be claimed as a deduction under various sections, it becomes really simple.

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Here’s a list of tax saving options:

Children Education Expense: the tuition fee paid for the education of two children is eligible for tax deduction under Section 80 C.

Most of us harbor a colossal misunderstanding that we can save taxes by investing in tax saving instruments. We tend to ignore expenses that could give us a tax break. Tax saving options are not only available for investments but also for specified expenditures made by us.

Tax Slabs for FY 2018-19:

 Income Tax Slabs for Individuals Less Than 60 Years Old

Income Tax slabs for Senior citizens who are upto 80 years old have a no tax limit of Rs. 3 lacs and for those aged above 80 years, the limit is Rs. 5 Lacs. Over and above this income, the tax slabs remain the same as individuals.

Under Section 87A, a rebate of Rs. 2,500/- is available if your total Income Less Deductions (under Section 80) is equal to or less than Rs. 3,50,000/-

Taxation for equity & equity oriented instruments:

For equity investments made prior to 31 Jan, 2018, the capital gain will be only on the excess above the market value as on 31 Jan, 2018.

Sound tax planning is very important to transform savings into meaningful investments. It is crucial to optimum returns and meet your goals while benefiting from tax breaks.

Choosing the Best Tax Saving Options is now in your hand.

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