By Abhishek Soni
If you’re employed for a corporation, your Accounts crew expects you to declare your tentative investments originally of the 12 months, current the whole listing of tax-related investments, and submit all proofs of that Financial Year.
However, you might have missed out on submitting them. For instance, your financial institution may need despatched your property mortgage certificates late, otherwise you may need missed the deadline for submitting paperwork as a result of some private causes.
Whatever would be the motive, it’s dreadful to know that you might have to pay increased taxes. Hop onto the following part to know how one can keep away from paying increased taxes this tax season.
Review Your Tax Situation
As with most life conditions, the primary and most troublesome step is admitting that the issue exists. So, take a while out of your hectic schedule to analyse your tax state of affairs. To begin with, verify your revenue and tax legal responsibility for the 12 months. If you don’t have any tax legal responsibility, you shouldn’t be involved about increased taxes. Just file your revenue tax return and you might be sorted. However, if there’s a tax legal responsibility, you might have to analyse it deeply. There are sure tax-saving alternatives which you can nonetheless leverage.
Switching Between Two Tax Regimes
At the time of submitting a return of revenue, one could change to the outdated regime in the event that they selected the brand new regime earlier and vice versa. The ITR Form asks for the person’s selection and the tax is computed accordingly. The TDS in extra of the ultimate tax legal responsibility (ascertained after bearing in mind the allowable deductions/ exemptions), could thus be claimed as a refund by choosing the outdated regime within the ITR.
Check Existing Exemptions and Investments for Availing Tax Deductions
Tax planning doesn’t essentially embody shopping for new property, particularly when the 12 months has been so financially troublesome for all of us. In all chance, you may need invested in a few of the common funds that qualify for a tax deduction. Some examples are:
- Children’s tuition charges
- Life & Medical Insurance premiums
- Your share of PF contribution to your employer’s PF fund
- Loan EMI funds
If you have got been unable to fill your cup with investments, these bills will come to your assist. However, you possibly can solely declare these deductions you probably have made these investments after the final date given by the employer for proof submission however earlier than thirty first March of the monetary 12 months.
Note: Make it some extent to take care of genuine proofs of such investments in hand in case the IT division requests them in future.
Explore More Avenues
If you reside in a rented house and have paid lease funds, you possibly can declare a deduction for House Rent Allowance while you file your tax return. All you want are your lease receipts and your landlord’s PAN (the place lease funds are greater than Rs 1,00,000 every year).
(The writer is the founding father of Tax2win, a web based tax submitting platform. Views expressed above are these of the writer and never essentially of financialexpress.com. Please file your ITR earlier than the due date)