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    Tax-saving guide for FY 2019-20

    Synopsis

    In our hurry to complete the tax-saving exercise before the end of the financial year, we end up making expensive mistakes. Here is a handy guide to set you on the right path.

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    Many are in the middle of finishing off an important task -- tax-saving. That is right, between the months of January and March is when we have to complete our tax-saving exercise.

    In our hurry to complete the tax-saving exercise before the end of the financial year, we end up making expensive mistakes. These include investing in products without weighing the pros and cons properly, and not making full use of the various deductions and exemptions.

    However, don't worry, here is a handy guide that can put you one the right track. Here you will find articles, videos, slideshows and even podcasts that will help manage your taxes efficiently, these include making proper use of the various sections of the income-tax Act, financial products and expenditures that can help you save the most tax, and how to go about using your office reimbursements.

    Bookmark this page as we will be updating it with tax-saving stories regularly.

    Submit these tax-saving proofs to your employer to avoid excess TDS
    With your company's accounts department knocking on your door to submit your income-tax saving proofs, you will have to gather all the relevant papers. Once the actual proof is submitted, the accounts department will compute the taxes based on the proofs of the actual investments made by you. And for that you will have to furnish the documentary evidence of having actually made the investments as per the investment declaration made earlier. Click here to read the full story.

    Tax-saving options under section 80C
    Section 80C of the Income-tax Act, 1961 is one of the most commonly used tax-saving avenues. There are various investments and expenditures under this section that you can use to save tax. Click here to know all about the tax-saving options available under this section.

    Have you done your tax-saving right?
    While doing your tax savings, you have to make sure that you have done it properly, especially if you are doing it at the last minute. To help you, here are five questions you should answer to check if you are on the right track. If you are not, remember that you still have a couple of months left to take corrective measures. Click here to read the full story.

    How employees can make full use of LTA
    Employees who are eligible for Leave Travel Allowance (LTA), as part of their cost-to-company, can claim reimbursement of expenses incurred on travel. Subject to certain limits and conditions, this reimbursement is not included in one's taxable income. The LTA tax break can be claimed for travel of self and family members for journeys undertaken within India. Click here to read the full story.

    Rs 5 lakh + Re 1 = You will be in tax net
    As per current income tax laws, a person is eligible for tax rebate up to Rs 12,500 under section 87A, if the net taxable income does not exceed Rs 5 lakh. Therefore, the tax liability in such a situation will be zero. But what happens if your net taxable income exceeds Rs 5 lakh by even Re 1? Find out in this story.

    For the risk-averse, NPS ticks all boxes for retirement, tax savings
    NPS leads a kind of a hidden existence as a great savings option due to the lack of a sales push. Those who know about it and are confident of the knowledge they have gained themselves use it enthusiastically. Savers have to understand
    its utility and start using it, here's why and how.

    Choose your tax saving options wisely
    Tax planning is an integral part of financial planning, but should not be the key driver of one's investment decisions. Once you figure out your financial plan, putting aside money to make the most of the available tax breaks would be easier. Click here to read the full story.

    Can these deductions make you tax free?
    If the net taxable income after all deductions does not exceed Rs 5 lakh, the taxpayer won’t have to pay any tax. Find out if you are eligible for any of these tax deductions to lower your income below the threshold.

    Invest in these tax-saving schemes by March 31 to keep your accounts active
    You need to keep these accounts active since they come with tax benefits under Section 80C of the Income-tax Act, 1961. Even if you don't invest in them this FY, you still need to invest a minimum amount to keep them active and avail these benefits. So make sure you deposit the requisite minimum amount by March 31.

    Find out how much you need to invest to save tax
    Yet to complete your tax-saving investments? Many taxpayers are not aware of the investments and expenses that are eligible for tax deduction under Sec 80C and Sec 80CCD1b. Use this tax planning calculator to know how much more you need to invest to save tax this year.

    Tax-saving for young earners simplified
    Many young adults are left confused as to what the whole tax-saving exercise entails. If you are a young earner who wants to save on tax without locking away money in a long-term investment, here are a few tax-saving investments and tax breaks you can use.

    Quick tax-saving tips for FY 2019-20
    There are many tax breaks you can claim on various incomes and expenditures under different sections of the Income-tax Act. These can help you avoid the last-minute rush of making tax-saving investments. For FY 2019-20, there is no tax-liability if your taxable income does not exceed Rs 5 lakh. So make use of these tax-breaks to bring your taxable income below Rs 5 lakh.

    Seven tax-saving investments for the risk averse
    Selecting the right tax-saving investments may not come easy for everyone. While some tax-savers are market-linked, i.e., the return generated is not fixed (rather it depends on the performance of the underlying securities such as equity or debt), there are those that come with assured returns. If you are someone who does not want to take much risk with their investment and wants assured returns, here are seven fixed-income, tax-saving avenues to choose from.

    Don't rush to make last-minute tax-saving investments
    There are several investments with distinct features and tenures. In our rush to select a financial product, especially to reduce our tax outgo, we miss out on expenditures that can be claimed to save tax instead. Read this article to know about the expenses that come with tax benefits and will help you neutralise your tax outgo for the current financial year.

    Claiming HRA tax exemption in different rental situations
    It might not be that easy for everyone to claim tax exemption on HRA. This is especially true in the case of those who have relocated during a financial year and younger employees staying away from home. Here are three scenarios young earners are likely to face while claiming tax exemption on HRA and how they can deal with it. Click here to read the full story.

    1. What are the top 10 tax-saving options?
      ET Wealth has ranked the top 10 financial instruments you can use to save tax this year. ELSS funds are again at the top spot, followed by NPS that ranked second. But Ulips have moved up even as small savings schemes, including PPF, NSCs, Senior Citizen's Saving Scheme and Sukanya Samriddhi Yojana have slipped. Click here to read about the top tax-saving options.
    2. How much tax can I save via section 80C?
      As per this section, if an individual or Hindu Undivided Family invests in or spends on specified avenues then as per the current laws, up to Rs 1.5 lakh of this investment/expenditure can be claimed as a deduction from gross total income before calculating tax payable on it in a financial year. Click here to find out more about section 80C.
    3. How can I save tax via mutual funds?
      Equity-linked savings schemes or ELSS offer tax deduction under section 80C of the Income Tax Act, for investments up to Rs 1.5 lakh in a financial year. You can invest via the SIP route or put in a lump sum amount. Click here to read more about ELSS.
    4. How can I avoid paying excess TDS?
      You need to submit your tax-saving proofs on time to your employer. The last date for such submissions varies, but most organisations would expect you to submit them by March 10, 2020. However, employers start asking for them in January itself. Read the full story here.

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