These errors in tax planning will show expensive, as an alternative of saving cash you’ll have to pay extra tax – India TV Hindi

Tax Planning Errors: The month of March is taken into account essential for tax planning. Until March 31, you may reap the benefits of the tax exemption given by the federal government by investing on the specified place. However try to be cautious in tax planning, in any other case it’s possible you’ll steer clear of the advantages of tax exemption. Tell us.

Not availing the advantage of 80C

Below Part 80C of Revenue Tax, tax exemption of Rs 1.5 lakh is given to widespread buyers. In such a state of affairs, it’s best to absolutely make the most of the 80C exemption for tax planning. For this, you will get this low cost by investing in schemes like Sukanya Samriddhi Yojana, PPF, NSC, and SCSS.

investing in insurance coverage

Many occasions folks purchase insurance coverage insurance policies in a rush within the month of March for tax planning functions. This has a really detrimental impression on funds. As a result of investing within the mistaken place, you get very much less returns. In such a state of affairs, it’s best to by no means purchase insurance coverage in a rush for tax planning. On the identical time, if you’re shopping for insurance coverage to avoid wasting tax, then plan first.

Insurance coverage premium by way of bank card

Many individuals, regardless of not having financial savings, pay insurance coverage premium by way of bank card simply to avoid wasting tax. In such a state of affairs, because of lack of financial savings, many individuals default on bank card payments and get trapped in debt. As a result of this, many individuals need to pay more cash within the type of curiosity as an alternative of saving tax. For that reason, funding must be made solely when you’ve gotten cash.

Investing for tax saving with out planning

If you wish to save tax in your earnings then it’s best to plan upfront. Investing in tax saving merchandise with out planning can deprive you of many necessary tax advantages. For that reason, tax saving ought to all the time be finished with full planning.

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