Last 2 days to make the most of your Tax Savings!

Here’s your quick checklist to make sure you have done enough to Save Tax for financial year 2014-15 –

  • Make the deposit to your PPF account if you haven’t done so already, you can deposit a maximum of Rs 1,50,000 in one FY. Remember to deposit a minimum of Rs 500 to keep the account active. Some banks allow you to transfer money to PPF online – you can always get your passbook updated later.
  • Have you paid the premium for your life insurance policy? Most insurance companies accept the payment online. Make the transfer now and keep your policy in force. When premiums are not paid regularly you may miss out on your Section 80C deduction. Remember not make the last minute rush to buy an insurance policy – you need to take full understanding of how much cover you need and what you should cover. Don’t buy something you may regret later
  • Invest in an ELSS? You’ll be able to purchase an ELSS quickly if you have a demat account. The Govt will be announcing its disinvestment plan soon and many of its infrastructure projects will kick off in the near future – we’ve heard on the street the timing may be just right to plan for an ELSS. Find out how much money you need to invest to max out your 80C. Consider EPF and other investments you may have already made and if you need another 20,000-40,000 go for a ELSS. Do remember to pick an ELSS which has a good track record. You can make this payment now and continue to invest in your ELSS into the next financial year – you can do a monthly SIP of say about Rs 5,000.
  • You can commit some money in a five year fixed deposit – it qualifies for the section 80C deduction. This can be easily done through your online account. Although the returns may not be significant and your money shall be locked in – this can be a good choice to put money away for 5 years and get Section 80C deduction.
  • HRA deduction – if you have didn’t inform your employer about your rent receipts or could not submit them on time to claim HRA deduction – do not worry! You can do so at the time of filing your return. Our CAs can help you avail HRA benefit.

Say good bye to the financial year 2014-15 and make it a good one! If you haven’t filed your IT Return for FY 2013-14 or AY 2014-15 – you have only today & tomorrow left to file it without incurring a penalty. Don’t miss it!

Reach out to us and we’ll help you out!


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2 Responses to Last 2 days to make the most of your Tax Savings!

  1. Elaine Andrade March 30, 2015 at 11:12 pm #

    How much can I claim under sec 80 G

    • cleartax-team March 31, 2015 at 10:22 am #

      You can see the list of all eligible donations which can be claimed under section 80G here

      Some of these donations are eligible for 100% deduction while some are eligible for 50%. You will be allowed to deduct the amount donated (100% or 50%) from your gross total income.