TOP 5 CONSIDERATIONS FOR MAXIMISING TAX EXEMPTIONS
Published By MintGenie Team | 11 Jan, 2024
Timely submission of proof for tax-saving investments, such as insurance, PPF, and NPS, is crucial to prevent excess TDS deduction, ensuring you receive the maximum tax benefits and avoid a reduction in your net salary.
Credit : UNSPLASH
Consider the following guidelines if you aim to secure tax exemption for your investments
Credit : PEXELS
Low Cash in Hand
Failure to submit documents for claimed deductions (e.g., ₹1.5 lakh investment) can result in reduced cash in hand as the employer deducts taxes for the unverified income.
Credit : UNSPLASH
New and Old Tax Regime
Opting for deductions requires choosing the old tax regime; switching from the new regime to the old one is necessary to claim deductions.
Credit : UNSPLASH
₹1.5 Lakh Deduction Limit
The ₹1.5 lakh deduction limit in a financial year is crucial; all investments combined (PPF, NPS, ULIP, Sukanya Samridhi Yojana, tax-saving fixed deposits, ELSS) fall under this limit.
Credit : PIXABAY
Submission of Requisite Documents
Submission of essential documents is mandatory, such as rent agreement and receipts for house rent allowance exemption; for rent exceeding ₹1 lakh per annum, providing the landlord's PAN number is compulsory.
Credit : UNSPLASH
Timely Submission to Avoid Risks
While submission deadlines vary, it is essential to submit documents promptly to mitigate risks and ensure a smooth process.