10 Smart Moves To Maximise Tax Benefits
Outlook Money|February 2018

Looking for an ideal tax-saving solution? Preeti Kulkarni and Himali Patel prepare a list on ways to optimise the tax breaks on offer

Preeti Kulkarni and Himali Patel
10 Smart Moves To Maximise Tax Benefits

The 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 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 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.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM OUTLOOK MONEYView all
Gold ETFs And FoFs
Outlook Money

Gold ETFs And FoFs

While Indians love to invest in physical gold, even mutual funds offer the option, but in paper format.

time-read
2 mins  |
November 2024
PLANNING TO BUY CHILD INSURANCE? THINK TWICE
Outlook Money

PLANNING TO BUY CHILD INSURANCE? THINK TWICE

Child insurance plans combine insurance and investment but often offer low returns due to high costs, making a combination of a term insurance cover and mutual fund a better option for securing your child’s higher education needs

time-read
7 mins  |
November 2024
How Do You Define Happiness?
Outlook Money

How Do You Define Happiness?

Money does buy happiness, but after a while, the appeal fades. We talk about our relationship with money, but, maybe, it’s time to revisit our relationship with happiness

time-read
5 mins  |
November 2024
Avoid Crypto As It Is Highly Volatile
Outlook Money

Avoid Crypto As It Is Highly Volatile

I am 22 years old and have recently started working. I want to invest a small portion of money in cryptocurrency. How should I go about it? Does it require a huge capital investment?

time-read
2 mins  |
November 2024
Invest Right, Don't Speculate
Outlook Money

Invest Right, Don't Speculate

The lure of high returns and quick gains from equity tips, cryptocurencies, and equity F&O can be enticing. But remember, return of capital is more important than return on capital

time-read
4 mins  |
November 2024
The Wedding & Budget: Is Minimalist Trend The Right Knot For You?
Outlook Money

The Wedding & Budget: Is Minimalist Trend The Right Knot For You?

Indian weddings are known for their pomp and grandeur, but minimalist weddings are also in vogue now. Dia Mirza was one such celebrity who went for a minimalist wedding. If you also want to keep things minimal on your big day, here’s how to do it

time-read
9 mins  |
November 2024
Here's How To Buy An ETF?
Outlook Money

Here's How To Buy An ETF?

Mutual funds are the preferred choice for retail investors. However, they come at a cost and fund management risk, apart from other risks. A smarter alternative is to invest through ETFs.

time-read
1 min  |
November 2024
How Passive Funds Help Diversify
Outlook Money

How Passive Funds Help Diversify

Passive funds provide a simple way to invest in broad markets as well as in specific themes and sectors, making them ideal for an investor's satellite portfolio

time-read
2 mins  |
November 2024
The Rise Of Passive Funds
Outlook Money

The Rise Of Passive Funds

The popularity of passive funds among retail investors has risen post Covid, and fund houses are out with many variations of ETFs and index funds. Does this category present a new opportunity for investors?

time-read
10 mins  |
November 2024
Tax Reforms: What's In Store?
Outlook Money

Tax Reforms: What's In Store?

The government is working on reforming the existing Income-tax Act, 1961. The impending reforms have raised many questions in the minds of taxpayers. Will the old regime and deductions be done away with? Will it really simplify your life? What's the need for these reforms? We try to answer these and other questions regarding tax reforms

time-read
10+ mins  |
October 2024