As we are very close to the end of the financial year, we have our thoughts regarding filing returns &
paying of taxes. We all are occupied with thoughts of how to save tax but there are certainly some who
don’t know how to do this and the need of it. The whole point of saving tax is to be able to save up the
earned money in such a way so that you can be able to utilize it for the future and they after all those
investments are in place one can go ahead with the filing of returns and paying the liable tax.
While we are all earning we surely should earnestly pay our taxes but there is also a need to make sure
before you move to pay your taxes you have invested at the right places for a secure future. It is best to
start investing at the beginning of the year but no matter how late we are we can always catch the last
minute train by investing in some good saving instruments before we get into the process of filing
Tax saving also known as tax planning helps an individual to smartly invest in savings instruments which
offers combined benefits of investment growth and reduction in the amount of taxes to be paid off. Tax
planning helps you grow your money, when you start off accumulating money in terms of your salary
instead of keeping it idle in your savings accounts it’s always beneficial to invest in schemes and policies
which will help you shed off the burden of tax and help your money grow making it a win-win situation
The simplest way to go for tax planning is by investing a part of your decided investment amount in
some securities for which tax benefits are provided by the government. To name them they are-
insurance policies, Public Provident Fund(PPF), Equity Linked Savings Scheme(ELSS), Fixed Deposit,
National Saving Scheme(NSC).
There are various sections under which you get an opportunity to invest & save tax. One of the options
is Section 80C- an individual can invest and claim Rs. 1.5 lakhs under various options of like PPF, NPS,
EPF, Life insurance premium, tax-saving mutual funds (ELSS) under this section.
Another is option of Section 80D-An individual can avail the benefit of Rs. 15,000 for himself and Rs.
15,000 for his parents additionally.
Another one is Section 80CCD- New Pension Scheme comes under this scheme where in a person can
invest around 10% of his gross income to gain benefits in retired age.
Another option is Section 80CCG-The Rajiv Gandhi Equity Savings Scheme (RGESS) is a new tax benefit
under this section which is introduced for equity investment in select stocks, mutual funds and ETFs.
If you are still confused, check out the below to help you go ahead-
• Check your current tax-saving expenses(if you had made any ) & the ones that you can claim.
This will include expenses like insurance premium, children’s tuition fees, EPF contribution, etc.
• Subtract this amount from ₹1.5 lakh to get the amount, this will be the amount you will be
investing. The entire amount would not require to be invested incase we have covered them in
• The final step is to choose the tax saving investment that matches your goals.
With a variety of options choose wisely to have best future savings & tax savings.
Note: Above mentioned are suggestions as per our view and opinion, before investment do
consult your financial advisor for investment advises and concerned risks.