Tax Saving Tips: If you also do not know the tips to save tax, then by adopting these methods, you can reduce your tax burden a little.
Income tax saving tips: Whenever the time comes for filing income tax return, then the most tension is to save tax. In such a situation, most people get confused about the tax calculation. While filing ITR, many times it comes to know that their liability is much more than the amount of tax deducted. That means more tax will have to be paid. In such a situation, every year the taxpayers also do their tax planning. But, there is a dilemma about where to save tax and how to save it. But, there are many ways in which it helps in saving tax. Today we will know three such methods, which most people do not know.
Keep profits tax free
People investing in Mutual Funds or Stock Market often book profits together in the long term. Most people believe about shares or mutual funds that the more time they give, the more profit will be made. But forget that the tax will have to be paid equally. In such a situation, there is a need to show some wisdom here. As per the existing rules, long term capital gains up to Rs 1 lakh are not taxable in 1 financial year. But, tax is levied on the long term. In such a situation, instead of booking profit once in 3-4 years, keep booking a little profit every year, due to this your profit will be tax free.
Earn from capital loss and save tax
Most investors would know that short term capital loss can be adjusted with short term and long term capital gains. However, long term capital loss can be adjusted only with long term capital gain. In such a situation, you should also make some loss, which will help in saving tax by adjusting it. It is a bit strange to hear, but it is a profitable deal. You have to calculate how much loss due to which your tax will also be saved (How to save tax) and you will not have to suffer much loss. Through loss booking, you can exclude weak stocks from your portfolio or you can sell the stock of a loss making company.
Save tax from bonds
Often take advantage of the profit earned from selling the house by investing in another house. But, the benefits can also be availed by investing in 54EC bonds. Because, no TDS is levied on the returns earned from these bonds. The capital gains from the sale of the house can be invested in 54EC bonds in different parts. Keep in mind, investment has to be made within 6 months of selling the house. These are bonds of PSU units, which fall under the category of safe investments. However, these bonds cannot be transferred for 5 years. Meaning they will have a lock-in period. Apart from this, the maximum investment can be done up to Rs 50 lakhs. Tax exemption is also available on this.
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
