Income Tax Deadline! Last 2 days to purchase tax-saving tools for FY 25. Check information below

Income Tax: If you are intending to select old tax obligation regimen at the time of submitting your tax return (ITR) in July this year for FY 2024-25, it is necessary to bear in mind that the last day to purchase tax-saving tools is March 31 i.e., Monday.

If you additionally plan to submit your income tax return under the old regimen, it is essential to make note of adhering to factors.

Investment choices: There are several tax-saving financial investment choices offered for taxpayers. These consist of PPF (Public Provident Fund), NSC (National Savings Certificate), NPS (National Pension System), SSY (Sukanya Samridhi Yojana) and KVP (Kisan Vikas Patra).

“Taxpayers who want to opt for old tax regime in Financial Year 2024-25, 31st March is your last chance to optimise your tax deductions,” states CA Pratibha Goyal, companion, PD Gupta & & Co., a Delhi- based CA company.

Tax conserving choices: These are several of the systems

PPF (Public Provident Fund): One can spend anywhere in between 500 to 1.5 lakh in this system. Interest provided on this system is 7.1 percent per year.

NSC (National Savings Certificate): One can spend any type of quantity which amounts to or greater than 1,000. Interest provided on this system is 7.7 percent per year.

SSY (Sukanya Samridhi Yojana): One can spend anywhere in between 250 to 1.5 lakh in a fiscal year. Interest provided on this system is 8.2 percent per year.

KVP (Kisan Vikas Patra): One can spend a minimum of 1,000, while there is no optimum restriction. Interest provided on this system is 7.5 percent per year.

SCSS (Senior Citizens Savings Scheme): One can spend anywhere in between one thousand to 30 lakh in a fiscal year. Interest provided on the system is 8.2 percent per year.

5-year National Savings Time Deposit: The system provides 7.5 percent per year. There is no optimum restriction to purchase this system while the optimum reduction which one can assert is 1.5 lakh in a fiscal year.

Old tax obligation regimen

Another bottom line worth bearing in mind is that these reductions are enabled just under old tax obligation regimen. If you are intending to submit your income tax return under the brand-new tax obligation regimen (additionally the default regimen), after that you are not qualified to assert any one of these reductions.

There are just a couple of reductions that are allowed the brand-new tax obligation regimen. These are as adheres to:

I. Deduction under 80CCD( 2 ): This is offered for payment made by the company in the direction of the National Pension System (NPS).

II. Deduction under 80CCH: This system is offered for the earnings made through Agnipath system.

III. Deduction under area 80JJAA: This is indicated for companies (and not people) to assert a 30 percent reduction on extra worker employment prices for 3 successive evaluation years.

Meanwhile, professionals think that taxpayers need to intend their financial investment throughout the year and not await completion of the year to continue.

“Tax savings should be planned during the entire year. One should not do it on the last day of March,” states CA Chirag Chauhan, that runs a CA company in Mumbai.

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