HomeWhat's TrendingUnlocking Tax Savings: Top Strategies for ITR Filing 2023-24 Revealed!

Unlocking Tax Savings: Top Strategies for ITR Filing 2023-24 Revealed!

As the income tax filing season dawns upon us, it’s natural to feel the weight of stress and confusion, but fret not, for there are avenues to ease the burden and secure your financial future.

For those navigating the labyrinth of ITR filings, the quest to minimise tax liabilities remains paramount. But fear not, as we bring you expert insights on how to navigate this fiscal maze and emerge victorious.

Dr. Suresh Surana, Founder of RSM India, underscores the potency of the Public Provident Fund (PPF) as a tax-saving instrument. Operating under the Exempt-Exempt-Exempt (‘EEE’) category, PPF offers a sanctuary where contributions, interest, and withdrawals remain untouched by the taxman.

‘The interest rate for PPF is set by the government and is usually higher than bank savings rates. The current interest rate on PPF is 7.1 per cent per annum,’ highlights Surana, emphasising its allure.

Delving deeper into the realm of tax-saving avenues, Dr. Surana advocates for the Equity-Linked Savings Scheme (ELSS), a mutual fund venture that not only harnesses the potential of the equity market but also offers deductions under Section 80C of the Income Tax Act.

Ashish Agarwal, Director at Acube Ventures, shines a light on the National Pension System (NPS), a long-term savings scheme boasting additional tax benefits. ‘Contributions to NPS offer an additional tax benefit of up to Rs 50,000 over the current tax-free limit under Section 80C,’ explains Agarwal, underscoring its viability.

Adding to the arsenal of tax-saving instruments, Agarwal extols the virtues of tax-free bonds backed by the government, emphasising their fixed maturity dates and tradability on stock exchanges.

Not forgetting the future generation, Agarwal champions the Sukanya Samriddhi Yojana (SSY), tailored for the welfare of girl children. Under SSY, investments qualify for deductions under Section 80C, with interest earned and maturity amounts exempt from taxation.

With these strategic insights at hand, taxpayers can navigate the ITR filing season with confidence, optimising their tax savings for FY 2023-24.

However, prudent advice dictates consulting with financial experts or tax advisors to tailor strategies according to individual financial goals and circumstances.

Monika Shanmugam