Tax-Saving Strategy for FY 2023–24: Follow THESE 5 Techniques to SAVE Income Tax

All taxpayers must file income tax returns (ITRs). It includes all information on yearly income and tax obligations. Sections of the Income Tax Act of 1961 provide for tax exemptions and rebates from the government. Here are four professional-recommended tax-saving strategies for the fiscal year 2023–2024 that you can utilise. Every taxpayer employs a variety of strategies to reduce their tax burden.

Some minor savings plans are free from income tax under Article 80c of the Income Tax Act. You can invest in these plans to save on taxes: 

Public Provident Fund Account

Employee Provident Fund

Equity Linked Savings Schemes

National Pension Schemes

Senior Citizens Savings Scheme (SCSS)

Sukanya Samriddhi Yojana (SSY)

Fixed Deposits (FDs)

Indian people now have two options for tax regimes after a new one was added in the budget for 2023–24. The brand-new tax law prohibits you from claiming HRA and other deduction benefits, but it does let you to claim a full tax refund if your annual income is up to $7 lacs. Therefore, you must compare the potential tax savings offered by these two regimes before selecting the best option for you.

Buying health insurance has two advantages: first, it is necessary for everyone in the current climate, and second, it can help you save money on taxes. According to the law, a taxpayer may claim up to Rs 25,000 in reimbursement for medical insurance premiums. You have the option to deduct health insurance costs under Section 80D of the Income Tax Act. Senior citizens are eligible for up to 50,000.

Everyone who pays taxes has the right to deduct the interest and principal on a mortgage. If you have a mortgage, you are legally allowed to deduct up to 1.5 lacs under IT Act 80c.