Tax saving tips for Gen Z filing ITR for first time in India
Filing an income tax return (ITR) for the first time can be a daunting task, but with some tax-saving tips, Gen Z individuals in India can navigate the process more effectively
Image Credit - Google
One of the key ways to save taxes is by utilizing deductions under Section 80C of the Income Tax Act.
Image Credit - Google
This section provides deductions up to Rs 1.5 lakh for investments in specified instruments. Some popular options include the Employee Provident Fund (EPF), Public Provident Fund (PPF)
Image Credit - Google
In addition to Section 80C, there are other sections under the Income Tax Act that offer deductions. For instance, Section 80D allows deductions for health insurance premiums paid for yourself, your family, and your parents.
Image Credit - Google
Section 80E offers deductions for interest paid on education loans, making it easier for you to pursue higher education without worrying about the financial burden
Image Credit - Google
It’s important to note that the government introduced a new tax regime in Budget 2020, which offers lower tax rates but eliminates certain deductions and exemptions.
Image Credit - Google
Depending on your income, deductions, and exemptions, you can evaluate whether the new tax regime or the old regime is more beneficial for you. Consider consulting a tax professional to assess which option suits your specific circumstances
Image Credit - Google
Remember to file your income tax return on time to avoid penalties and interest charges. The due date for filing ITR is typically July 31st, although it can vary.