What are best tips to save taxes in after latest budget 2024?

[shubhamk06]

I am curious to know what are the different things we can do to minimize tax in India after latest budget 2024. I am learning about taxation and all, but still have very less knowledge about it. As per the studies which I have read that many country takes around 4 out of 12 months of income as tax from salaried individual annual income. So please tell us what are the tips which we can do to save more tax and invest it in good assets.

 

[coffeesomday]

To save some bucks on your taxes in India after the 2024 Union Budget, here are some cool tips:

1. Choose the Right Tax Regime:
   • Compare old (deductions) vs. new (lower rates) regimes for your situation.
2. Tax-Free Investments:
   • PPF, Sukanya Samriddhi Yojana, ULIPs, and municipal bonds.
3. House Rent Allowance (HRA):
   • Claim if staying in rented accommodation.
4. Smart Salary Structuring:
   • Use allowances like transport, education, and meal coupons to reduce taxable income.
5. Manage Capital Gains:
   • Invest in Section 54EC bonds or another residential property to save tax.
6. File Accurately:
   • Ensure you claim all deductions and exemptions when filing ITR.
7. Stay Updated:
   • Keep track of budget changes for effective tax planning.

 

[RitamModak]

Simplified Tax Slabs: The new tax regime offers simplified tax slabs with lower rates compared to the old regime. Consider opting for the new regime if it benefits your specific financial situation.
Higher Standard Deduction: The standard deduction has been increased to Rs. 75,000 under the new regime, reducing your taxable income.
Tax-Saving Investments:

Section 80C: Utilize Section 80C to claim deductions of up to Rs. 1.5 lakh on various investments and expenses, including:
Public Provident Fund (PPF)
Equity-Linked Savings Schemes (ELSS)
Tax-saving fixed deposits
Tuition fees paid for children's education
Home loan principal repayment
Section 80D: Claim deductions for health insurance premiums paid for yourself, your spouse, and dependent children.
Section 80CCD(1B): Invest in the National Pension Scheme (NPS) to claim additional tax benefits.
Section 80G: Donate to eligible charitable institutions to receive tax deductions.
Other Tax-Saving Strategies:

House Rent Allowance (HRA): If you receive HRA from your employer, you can claim tax deductions on the actual HRA received or 10% of your basic salary, whichever is lower.
Leave Travel Allowance (LTA): Claim tax deductions on LTA expenses incurred for travel with family within India.
Tax-Loss Harvesting: Offset capital losses against capital gains to reduce your tax liability.
Consult a Tax Professional: Seek advice from a qualified tax professional to understand your specific situation and explore the best tax-saving strategies for you.
Investing in Good Assets:

Diversify Your Investments: Spread your investments across various asset classes like stocks, bonds, mutual funds, and real estate to reduce risk and maximize returns.
Long-Term Perspective: Invest for the long term to benefit from compounding and ride out market fluctuations.
Consult a Financial Advisor: Seek guidance from a financial advisor to create a personalized investment plan aligned with your financial goals and risk tolerance.


Stay Updated: Keep yourself updated with the latest tax laws and regulations to make informed financial decisions.
Plan Ahead: Start planning your tax-saving investments early in the financial year to maximize benefits.