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As the deadline for income tax returns (ITR) approaches, many taxpayers run to reduce their taxable income and maximize deductions.
Fortunately, there are several last-minute tax-saving strategies that you can use to lower your tax liability, even if you’re running short on time.
Whether you’re a salaried employee, a freelancer, or a senior citizen, these tax-saving tips are quick, easy to implement, and highly effective.
In this blog, we’ll walk you through the top last-minute tax-saving tips to help you save money and file your tax returns on time. These tips are practical, require minimal effort, and don’t involve long-term financial commitments or complex procedures.
One of India’s most popular ways to save on taxes is by claiming deductions under Section 80C. The total limit for deductions under this section is ₹1.5 lakh, and it covers a variety of investment options. If you haven’t fully utilized this limit yet, here’s how you can maximize your deductions:
Quick Investment Options for Section 80C:
These options are straightforward, don’t require lengthy procedures, and can be done quickly, making them perfect for last-minute tax planning.
Health insurance is essential for financial protection, but did you know it can also help you save on taxes? Section 80D allows deductions for premiums paid on health insurance for yourself, your spouse, children, and parents.
Last-Minute Tip: If you’ve not yet paid for health insurance premiums this year, you can immediately claim deductions before filing your tax return.
Donations to charitable organizations not only help those in need but can also significantly reduce your taxable income. Section 80G allows you to claim deductions for contributions made to approved charities and relief funds.
Last-Minute Tip: Look for online platforms that make it easy to donate to charitable causes. This can be done in just a few clicks, and you can claim the deduction in the same tax year.
Under Section 80C, you can claim deductions on tuition fees paid for your children’s education. This is a great way to save taxes, especially if you have pending tuition fees that need to be paid.
Last-Minute Tip: If you have unpaid tuition fees, pay before the tax filing deadline to claim this deduction.
The National Pension Scheme (NPS) is another excellent way to save taxes while securing retirement. NPS contributions are eligible for deductions under Section 80CCD(1B), providing an additional ₹50,000 deduction beyond the ₹1.5 lakh limit of Section 80C.
Last-Minute Tip: If you haven’t contributed to NPS this year, do so before filing your return. This is a great way to increase your tax savings without complex paperwork.
Section 87A provides a tax rebate of up to ₹12,500 if your taxable income is less than ₹5 lakh. This is an automatic tax benefit and doesn’t require any investment or complex paperwork.
Last-Minute Tip: If your income is close to the ₹5 lakh limit, consider optimizing your deductions to qualify for this rebate.
For those who have taken home loans, there are tax-saving benefits under Section 24(b) for interest payments and Section 80C for principal repayments.
Last-Minute Tip: If you haven’t yet made your home loan payment for the financial year, do so before the deadline to claim these deductions.
Do you have a savings account? If you’ve earned interest on your savings, you can claim a deduction under Section 80TTA of up to ₹10,000. This applies to interest earned on savings accounts held with a bank, post office, or cooperative society.
Last-Minute Tip: Ensure all your interest income is reported, especially if you have multiple savings accounts.
If you’ve already filed your ITR but missed out on any deductions, you can file a revised return under Section 139(5) before the due date. This allows you to make corrections and claim missed deductions.
Last-Minute Tip: If you’ve overlooked any deductions, filing a revised return can be a great way to claim them before the deadline.
As the tax filing deadline approaches, taking advantage of every available opportunity to reduce your taxable income is necessary. By implementing these last-minute tax-saving tips, you can minimize your tax liability without the stress of long-term commitments or complicated procedures.
Whether contributing to a PPF account, claiming health insurance deductions, or donating to charity, there are plenty of quick and accessible ways to save on taxes. Don’t let this year’s deadline pass you by—use these tips to ensure you’re not leaving any tax-saving opportunities on the table.
Remember, the key to successful tax planning is timely action. So, act now and reap the benefits of these simple yet effective tax-saving strategies!
Chartered Accountant
Vyapar TaxOne
CA
