Tax Savings Tools: Invest Before March 31 For FY2024-25 Deductions

Old tax regime

As the end of the financial year 2024-25 approaches, taxpayers who opted for the old tax regime can invest in the tax saving tools before March 31. These tools can help to claim deductions.

Employers Seeking Tax-Saving Proofs

There are companies that ask employees to prove and show that they have invested in a tax-saving way. If an individual does not have the required documents, then tax deductions at source are not eligible for deductions.

Tax-Saving Instruments

There are multiple options that are available or deductions that include Section 80C, which entails National Savings Certificate (NSC), Public Provident Fund (PPF) and Kisan Vikas Patra (KVP), etc.

Other Instruments

The other tax saving instruments include Section 80CCC, which includes contributions to specified pension plans, Section 80CCD(1), which includes contributions to the National Pension System (NPS) and Section 80G, which includes donations to specified charitable institutions and relief funds.

New vs. Old Tax Regime

Both new and old tax regimes have potential tax-saving tools, from which an individual should choose which one is right for them. An online calculator is provided by the tax department for comparing liabilities under both regimes.

Read more