There is only time till March 31 to avail income tax exemption in the financial year 2023-24. According to the rules, if you want to avail the income tax exemption for the financial year 2023-24, then you can avail the benefit by investing till March 31 without any worry.
If your salary has been deducted in February and is going to be deducted in March also. Now you may also be wondering how to save it or get it back, because your salary has been deducted due to coming under the ambit of Income Tax. If you want, you can still take steps for tax saving, you have time till 31st March.
Actually, under the old tax regime, taxpayers can avail tax exemption by providing details of investment. But there is only time till March 31 to avail income tax exemption in the financial year 2023-24. Let us know that if your salary has been deducted due to income tax, then what are the options to get it back?
First of all, the employee has to give information about his investments i.e. Investment Proof and HRA details to his company where he is working. Most companies ask their employees to submit investment proof from January to the end of February. So that it can be submitted to the Income Tax Department after verification.
Chance till 31st March
Most of the people in the country take steps to save tax in the last three months i.e. January, February and March. Most people save tax in the last week of March. If in your institute also the last date for submission of investment proof was till February, then what option is left now? You may also have a question in your mind that when the last date for investment to save tax is March 31, then why do companies collect the details so far in advance?
Let us tell you, as per Income Tax rules, if you have submitted the Investment Proof for the financial year 2023-24 to your organization where you work, then there is no need to worry. You can avail tax exemption by investing till 31st March. There are very easy methods for this.
Mention investments till March 31 in ITR
According to the rules, if you want to avail the income tax exemption for the financial year 2023-24, then you can avail the benefit by investing till March 31 without any worry. Even if you have submitted investment proof and HRA documents related to income tax where you work. You can avail full exemption by investing till 31st March and filing ITR before 31st July. In which you can submit all the investment documents including HRA, which is valid under the income tax rules.
That means, being tension free, you can purchase life insurance, PPF, NPS and medical insurance by 31st March and file ITR on the basis of this document by 31st July and claim it. Not only this, if your salary is deducted due to tax in the months of February and March, then that amount will also be refunded as soon as you make a claim. Therefore, consider March 31 as the deadline for this.
How to save tax money?
By investing under Section 80C of the Income Tax Act, you can deduct an amount of up to Rs 1,50,000 from your taxable income. These include amounts like premium paid for life insurance policies, children’s school tuition fees, principal amount paid under PPF, KVP, Sukanya Samriddhi Yojana, NSC home loan.
Additional benefit of Rs 50 thousand by investing in NPS
Apart from this, you can get additional benefit of Rs 50 thousand by investing in NPS. You can also avail tax exemption by purchasing medical insurance. Tax exemption is also available on investment in National Pension System (NPS) under Section 80C of the Income Tax Act. You can also invest Rs 1.5 lakh annually and an additional Rs 50 thousand under Section 80CCD (1B). By investing in NPS, you can avail a total exemption of Rs 2 lakh in Income Tax.
Income tax has been cut?
You can also avail tax exemption by investing money in mutual funds. For this you will have to invest in Equity Linked Saving Scheme (ELSS), which is a type of equity fund. In this, tax exemption of up to Rs 1.5 lakh is available under Section 80C of the Income Tax Act. There is no tax on returns/profits up to Rs 1 lakh annually in ELSS. ELSS have the shortest lock-in period of 3 years which is one of the best among all tax saving investment options. Apart from this, you can also save tax by buying Tax Saving FD and Unit Linked Insurance Plan (ULIP).
Health insurance
Under Section 80D of the Income Tax Act, you can claim a deduction of up to Rs 25,000 for payment of health insurance premium for yourself, your spouse and children. At the same time, if you buy health insurance for your parents, you can save an additional amount of Rs 50,000.
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