Tax season is always a busy time of the year for most people, as they resort to the last minute investment options. Experts say, youngsters in the age group of 25-35 are not choosing the right tax saving decision to attain their financial saving goals. This is due to the fact that they are confused on when is the best time to start tax saving plans.
Since, working on tax savings is a once in a year event it needs to get done with at the earliest. If you analyze the tax that you pay and the amount you could have saved, you will reconsider the investments that you make. There are various short and long-term investment plans that will yield good returns for investors besides helping them to save money from taxes.
Some other tips to create your best tax savings plan:
•When staying at your parents’ house pay rent and claim it under HRA to save tax
•By donating to charitable trust, you can avail tax deduction under Section 80G
•Expense incurred towards your kids’ tuition fee can be availed for tax benefits under Section 80C. Also, there is section 80E under which you can claim deduction against the interest paid on education loan
•For stamp duty and registration expenses incurred in house property you can avail tax benefits under section 80C