Effective tax planning is crucial for investors who maximise their savings and enhance investment returns. With the right strategies, you can minimise your tax liability and ensure that more of your hard-earned money stays with you. The Aditya Birla Capital App offers various tools and resources to help you with tax planning, making navigating the complexities of taxes and investment easier. Here are some essential tax planning tips for investors that you can implement using the Aditya Birla Capital App.
- Leverage Section 80C To The Fullest
Section 80C of the Income Tax Act is popular for tax savings. It allows deductions up to ₹1.5 lakh per year. You can qualify by investing in the Public Provident Fund (PPF), Employee Provident Fund (EPF), Equity-Linked Savings Scheme (ELSS), or National Savings Certificate (NSC).
- Invest in Tax-Saving Mutual Funds (ELSS)
Section 80C of the Income Tax Act is well-known for tax savings. It allows deductions up to ₹1.5 lakh each year. You can qualify by investing in the Public Provident Fund (PPF), Employee Provident Fund (EPF), Equity-Linked Savings Scheme (ELSS), or National Savings Certificate (NSC).
- Utilise Health Insurance Deductions under Section 80D
Health insurance offers financial protection in case of medical emergencies and tax benefits under Section 80D. You can also claim a deduction of up to ₹25,000 for premiums paid for yourself, your spouse, and dependent children. An additional ₹25,000 is available if you pay your parents’ premiums.
- Benefit from NPS Contributions
The National Pension System (NPS) is another excellent investment option for long-term retirement planning and tax savings. Under Section 80CCD(1B), you can claim an additional deduction of up to ₹50,000 for contributions to the NPS.
- Take Advantage of Home Loan Deductions
If you have taken a home loan, you can claim deductions on the principal repayment and the interest paid. Under Section 80C, the principal repayment is eligible for a deduction of up to ₹1.5 lakh; under Section 24(b), the interest payment can be claimed up to ₹2 lakh.
The Aditya Birla Capital App seamlessly manages and tracks all of the above tax-saving strategies. Enjoy hassle-free tax planning and investments with just a few taps on your smartphone.
Use the Tax Planner Tool on the Aditya Birla Capital App
The Aditya Birla Capital App offers a Tax Planner Tool that helps you calculate your tax liability based on your income and investments. The app can suggest tax-saving strategies and investment options tailored to your profile by entering your financial details. This personalised approach ensures that you make informed decisions and maximise your savings.
Tax planning is crucial for investors. The Aditya Birla Capital App helps manage tax-saving investments and discover new opportunities, boosting savings. It covers ELSS, health insurance, NPS, and home loans. The app aids in making informed tax decisions. Start your tax planning with the Aditya Birla Capital App to secure your financial future.
