Tax Planning
10 Smart
Moves To
Maximise Tax
Benefits
Looking for an ideal tax-saving solution?
Preeti Kulkarni and Himali Patel prepare a list
on ways to optimise the tax breaks on offer
T
he annual tax-saving
season is here again.
The months of January,
February and March
usually see frenzied activity on
this front, with salaried employees
struggling to file investment
declarations ahead of the deadlines.
The last date for making tax-saving
investments, March 31, is also
drawing closer, adding to
the anxiety.
However, you can avoid this
annual rigmarole and plan tax-
related investments in a manner
that not only enhances your
financial planning strategy but also
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reduces year-end pressure on cash
flows. You can achieve your goals
by aligning your financials and tax
planning roadmaps.
If you have delayed the process,
understand the provisions under
the Income Tax Act, 1961, that
lists tax concessions to individuals
before going ahead with tax-saver
investments. Read on to learn more
about efficient tax-saving.
1
Section 80C: Look
before you invest
Instead of blindly squeezing out
`1.5 lakh from your savings to be
locked away in an equity-linked
Outlook Money February 2018 www.outlookmoney.com
savings scheme (ELSS) or a life
insurance policy for three and five
years respectively, you should look
at other deductions that Section
80C offers. For instance, tuition
fee paid as part of children’s school
fees is a relatively lesser-known tax
benefit, but even fewer tax payers
are aware of the change introduced
in 2015. “Pre-nursery, play school
and nursery fees are also eligible
for deduction under Section
80C,” points out Vaibhav Sankla,
managing director, H&R Block.
Evaluate all tax benefits to
know if you actually need to set
funds aside for tax-saving. “Add