Here’s how you can save taxes under Section 80C

Saving taxes can be a challenge, especially, when you are new to tax slabs and unaware about how to save taxes. Mostly, first-time jobbers face difficulty in saving taxes as they are clueless about deductions.

Also, as you need to invest by March 31^st to save taxes, many rush to make investments, ending up committing financial mistakes. To avoid them, one should plan taxes in advance and look at various options to save taxes.

Here’s a guide on how you can save taxes

1. Claiming tax: The deduction can be claimed only from income in the financial year in which the investment and expenditure is made.
2. Section 80C of the Income Tax Act: This is the most commonly used option to save taxes. You can claim a maximum of Rs 1.5 lakh from investment or expenditure made. By claiming the amount, you reduce gross taxable income.
3. Saving instruments under Section 80C: There are multiple options to save tax under Section 80C such as PPF, ELSS, tax-saving FDs, ULIPs, etc.
4. Look beyond Section 80C: There are other ways to save taxes as well. For instance, you can save tax under Section 80D via health insurance, deduction of rent paid under Section 80GG, and more.

You can also seek professional help as an advisor can suggest you a number of tax saving options, keeping your financial goals in mind.