Make tax saving investments before March 31

time to pay advance tax

Advance tax is paid in four installments at 15%, 30%, 30% and 25% in every quarter of the year. This has to be submitted by March 15. If it is not possible till 15th, then in any case submit it before 31st March. Failure to do so will result in higher interest being paid on the outstanding amount. This is for professionals and businessmen. If there is income from rent, interest, dividend or capital gain etc., then the salary earners also have to pay advance tax. People who are self-employed have to pay tax every quarter after estimating their annual income. But if the total tax on this income is less than Rs 10,000, then there is no need to deposit this tax. Pensioners are also not required to pay advance tax.

calculate income tax

First calculate your income and find out how much your tax is made. If your income is more than 5 lakh rupees annually then you should do tax planning. Under Section 80C of the Income Tax Act 1961, you can take a deduction of 1.5 lakhs on your taxable income. If someone’s total income is taxed at the rate of 30% and 4% cess, then he has to pay an additional tax of Rs 46,000 if he does not take the maximum deduction. Therefore, according to the old tax system, you can get income tax benefits. For this, you can choose any option from PPF, Life Insurance, ELSS, NSC, Tax Saving Bank Deposit etc. If the deduction available under Section 80C of Income Tax is complete, then you can save some tax from health insurance policy as well. This is also the right time for tax free investment because if you invest after March 31, 2023, it will be considered for the next year i.e. 2023-24 financial year. In such a situation, the profit will not be this year, but next year only. Under section 80C, you can save tax on investments up to Rs 1.5 lakh. This amount is deducted from gross total income. Similarly, to save tax under 80CCD, you can deposit Rs 50,000 in NPS.

Activate Sukanya Samriddhi and PPF, NPS schemes

If you have opened accounts of Sukanya Samriddhi Yojana (SSY), Public Provident Fund Account (PPF) or National Pension System (NPS) schemes so that you can invest in them, then definitely keep minimum money in your account this year also. Failure to do so will result in account closure. Getting it activated again will cost time and fine will also be imposed. That’s why deposit money in it in time. The minimum contribution for PPF is Rs 500. It is also not as risky as ELSS. On this, the government announces the interest rate every quarter. If the account is opened, then every financial year one has to invest Rs 500 in it, otherwise it will be discontinued and a penalty of Rs 50 is imposed every year. Similarly, 1000 rupees for NPS and at least 250 rupees have to be deposited every year to keep SSY account active. SSY account can be opened only for two daughters of a family and if two daughters are twins then this account can be opened for three daughters. The father of a girl child up to 10 years of age can open this account. So far 3 crore accounts have been opened under this scheme. The government announces its interest rate every quarter. Any person can open an account through a bank or post office. Sukanya Samriddhi Yojana matures when the girl child turns 21 years of age.

ELSS mutual funds are very useful

ELSS (Equity Linked Savings Scheme) are tax saving mutual funds. Equity means share market. In ELSS we invest our money in tax saving mutual funds instead of investing directly in the stock market. After this, these funds invest most of the amount invested by us in the stock market. It can be around 80 per cent. But first, add up all your tax saving investments and see how much less it is than Rs 1.5 lakh. The benefit of tax deduction under 80C will be available only on investing up to Rs 1.5 lakh. Investing in ELSS is profitable but it does not mean that there is no risk in it. It is linked to the stock market, so it is also affected by its rise or fall. You can invest a minimum of Rs 500 every month in this and there is no maximum limit. But investing in ELSS cannot be withdrawn before 3 years. If someone wants after 3 years, he can withdraw the entire deposited money and its return.

Tax saving FD is also an option

Even if a person wants to make a tax saving fixed deposit for 5 years, he can save income tax in the current financial year. This can be done through the bank or post office. Tax will not be saved on FD of less than 5 years and after making FD of 5 years, money cannot be withdrawn before the completion of the term. Its interest rate depends on the bank, so every bank can give different interest. As far as making FD in the post office is concerned, the government itself announces the interest rate. But the interest amount received on this FD is taxable. In this, a minimum investment of Rs 500 has to be made and there is no maximum limit. But the tax benefit is available only up to Rs 1.50 lakh.

Senior Citizens Saving Scheme (SCSS)

Only the elderly can save tax by investing in this scheme. The government also announces its interest rate every quarter. Once the investment is made, the interest rate will remain the same till maturity. The government pays this interest to the elderly on every quarter. Its lock-in period is also 5 years. However, the account can be closed even before this. But for this then penalty may have to be paid. A minimum of Rs 1000 can be deposited in this and a maximum of Rs 15 lakh. However, in the budget of 2023, now the limit of 15 lakhs has been increased to 30 lakhs. Whose benefit will be in the next financial year. But the interest earned from this scheme is taxable. Apart from this, those who want to invest in Pradhan Mantri Vaya Vandana Yojana, this is also the right time. You can invest in this scheme for up to 10 years. If you want to close it before 10 years, that is also an option. Under this, you can get monthly, quarterly or yearly pension. Husband and wife together can invest up to 30 lakhs.

This work is also necessary

Get Pan-Aadhaar Linked
The last date to link Aadhaar card with PAN number is 31 March 2023. Now it is very important to link these two documents with each other. If they are not linked then the PAN card may become invalid. At present, a fine of Rs 1000 is being imposed on processing. Many important works can come to a standstill if the PAN card is not working. Let’s say you want to invest in the stock market. If you want to invest money in mutual funds or elsewhere, you will not be able to. So don’t delay this work now.

link mutual fund with aadhaar
Mutual funds are also being linked with the Aadhaar number of the investors. Asset management companies will have to update the Aadhaar numbers of all people and get them validated by UIDAI. In this way it will be necessary to link all mutual funds with Aadhaar. Online, offline, SMS or email can be used to link Aadhaar with mutual funds. If it is not linked to Aadhaar then you will not be able to withdraw your money. Therefore, this work should also be completed before 31st March.