Every citizen should pay Income Tax, but many of us make errors while filing our Income Tax Returns which can be easily avoided. Are you pondering how you can avoid these errors and save taxes, well we have a guide for you that will help you save your taxes.
Here are the tax saving techniques that you can follow to save maximum amount of taxes: –
- Tax saving while filing Income Tax Returns
Tax planning is one of the most important keys while filing ITR, as we know it is hard to shell out your hard-earned money. Tax planning differs from person to person depending on their age and the slab they belong to.
- Tax Saving for the people in their 20s
People who fall under this age group are the ones who have just started earning and tax saving is certainly not something they are bothered about, but this is not a good practice and will not help you in the long run. The motive should be to start saving as early as possible in your career. This is considered to be the best time to take risks and make as many investments as possible. Schemes like ELSS and ULIP can help individuals under this age group on a long run and it will also them to claim deductions under section 80C.
- Tax Saving for the people in their 30s
Mostly, people who belong to this age group are married and have a family, their focus is on earning and saving funds for their better future. People fall under this age group should invest in Health Insurance as well as life insurance schemes so that they can claim deductions under section 80D and 80C. In this age group individuals can get additional tax benefits for tuition fees of the children or home loan if any.
- Tax Saving for the people in their 40s
By this age you have more responsibilities to deal with. Hence, you can continue to take tax benefits by investing in health, life insurance schemes, home loan and tuition fees. You can also take benefits by investing in NPS.
- Tax Saving for the people in their 50s
Once you enter this age, your focus shifts towards retirement plans. You can claim deduction under sections 80C, 80D, 80CCD etc, if you have invested in low-risk saving instruments like PPF and increased your health cover along with a timely premium payment.
People who fall under the age group of 60years or above can garner benefits by investing by investing in bank FDs.
You must always do tax planning according to the age group you belong to and your financial priorities.