As per the notification of Government of India, the filing of ITR for the assessment year 2017-18 will be a simplified ITR filing for individuals starting from 1st April. ITR-1 e-filing facility is available from 1st April till the stipulated dateline, i.e. 31st July’17. Investment to save on your taxes on ITR Filing.
Save on your Taxes on ITR Filing
The current forms for filing ITR are – ITR-1 Sahaj for the salaried employee and ITR 2 for the individuals and HUFs, whose income does not include the business income.
If you’re also filing income tax return then below listed investments can save you taxes.
Equity- Linked Savings Scheme (ELSS)
ELSS is one of the best saving investment with the potential of highest return. And its market risk can be neutralized by employing SIP mode of investment.
Public Provident Fund (PPF)
It is one of the safest long term saving investment. It earns a tax-free return of 7.9% which is better than taxable FD interest. Moreover, you can gain a tax deduction up to Rs. 1.5 Lakh u/s 80C.
Life Insurance as well as Medical Insurance can provide dual benefit of protecting against eventualities and tax savings u/s 80C and 80D respectively. However, you should not misread insurance with investment.
Sukanya Samriddhi Yojana
It is one of the best tax saving investment for girl child of less than 10 years of age. It provides a tax deduction up to Rs. 1.5 Lakh u/s 80C and benefit you tax free interest of 8.4%.
New Pension Scheme (NPS)
It is one of the best tax saving investment plans for retirement. It can provide you deduction u/s 80CCD(1B) up to Rs. 50,000/- which is over and above Rs. 1.5L u/s 80C
Senior Citizen Saving Schemes (SCSS)
It is one of the best tax saving scheme for senior citizens. It is an investment without any risk and allows you claim deduction u/s 80C. Moreover, premature closing is also available after 1 year.
Therefore, this assessment year 2017-18 escalate your tax return with these tax-free schemes. Moreover, the supposed deadline on 31st July was extended to 5th August ’17 due to day long strike at public sector bank.
However, if you missed the extended deadline you can still file your ITR by paying minimal penalty. In some cases, you can avoid paying the penalty too.