No time left for tax planning: Learn how to save you tax here

Financial year 2017-18 is in its last phase and now it is the last chance that if there is any shortage in planning, then it should be completed.

New Delhi: When Neha received an email related to depositing an investment proof from her account department, she remembered that she has not yet completed her tax planning. And then they got confused about how to save tax at the last moment. There are many such taxpayers like Neha who have missed the email from the account department. Although tax planning should be started at the beginning of the financial year so that it can be completed from time to time, but many times it is avoided for various reasons. And the result is that at the last moment, it does not understand where to invest, so that with the saving of tax, investment can also help in achieving economic goals. Financial year 2017-18 is in its last phase and now it is the last chance that if there is any shortage in planning, then it should be completed.

Pankaj muthal

Income tax calculation
First of all, it is important to know how much tax is on your total income and how much you should invest in various tax saving schemes. There is a progressive tax system in our country. That is, as the income of the person increases, the percentage of income tax increases as well. Individuals having annual income less than Rs 2.50 lakh did not have to pay any income tax. Whose income is between Rs 2.50 lakh and Rs 5 lakh, they have to pay income tax of 5 percent on the amount of more than Rs 2.5 lakhs. People earning from Rs 5 lakh to Rs 10 lakh will not get any tax on the first 2.5 lakhs but the next 2.50 lakh will be taxed at 5 percent and the amount above will be taxed at 20 percent. Those whose annual income is more than 1 million, they have to pay income tax at the rate of 10 per cent on the amount of Rs. 112500 and above, 30 per cent. If a person's annual income is more than 50 lakhs then he also has to pay surcharge on income tax. It is also important to know that those persons whose annual income is up to 3.50 lakhs also get a rebate of income up to Rs 2500 under income under Section 87A of Income Tax.

Investment in Tax Savings Schemes
You can save your income tax by investing in certain schemes like Public Provident Fund, NSC, Five Year Bank Fixed Deposit, Tax Saving Mutual Fund, as per Income Tax Law. Tax exemption can be achieved by investing up to 1.50 lakh under these schemes under Section 80C of Income Tax. This investment can be done anytime during the financial year but if you have not done so soon, then complete it soon. If the date of the 31st March goes out, you will not get the benefit of this financial year. Contribution to your employees' provident fund, children's school fees and the amount of principal paid on home loan during the financial year can also be included under Section 80C of Income Tax. Therefore, before investing, please check that all these Extra and how much you need to invest.

Investments in National Pension Scheme
You can take advantage of additional discounts under section 80CCD (1B) of income tax by investing up to Rs 50,000 in the government-run pension scheme. This scheme is also available in post offices and public sector banks and in many non-governmental and private sector companies.

Health Insurance
If you take a health insurance policy for yourself or your family, you get tax deduction under Section 80D of Income Tax on its premium. Apart from this, if you do your health check-up then you can also get the benefit of tax deduction by adding up to 5000 rupees.

Tax exemption on home loan
If you have taken a home loan, you can get a tax rebate on loan up to 2 lakhs paid on it. You can get the certificate from your bank. If you have rented the house, do not forget to add the income earned in the form of your income. Even if you have taken loans for more than one house, you can get tax rebate on interest paid up to a maximum of 2 lakhs.

f you are a salaried employee and are eligible to get medical expenses from your office, do not forget to give your medical bills to your employer. Also, if you are living in a rented house, do not forget to get the rental receipt in your office. If the last date for submitting the proof of investment in your office has come out and you have not invested according to your income tax planning, you must definitely do it. If your employer refuses to accept the receipt of that investment, you can claim your refund while filling your ITR.

The author is Managing Director of Optima Money Managers and gives his professional opinion on financial issues.