Top 5 last-minute income tax saving tips before March 31 deadline: Here’s all you can do

We are busy with our lives, handling multiple tasks and tight schedules, which often make it easy to overlook important things like tax planning. Some people might be preoccupied, while others might be delaying until March 31st, only to rush through a hasty tax planning process. As a gentle reminder, here are the top 5 last-minute tax-saving tips to help you save tax. Here's what you can do. 

Explore Tax benefits under Section 80C

 You can save up to Rs 1.5 lakh in taxes under Section 80C. This includes deductions for medical insurance premiums for you and your family, as well as interest on home and education loans. Plus, contributions to the National Pension System (NPS) are also eligible for deductions. In fact, you can save an extra Rs 50,000 in taxes just for NPS contributions. However, many people don't claim their full deductions, so make sure you don't miss out.

Update your income details with Form 12B

If you switched jobs in 2024, you need to fill out Form 12B. This form helps your new employer deduct the correct amount of taxes from your salary. Therefore, make sure to submit Form 12B by March 31, so your employer can get your tax details right. 

Evaluate your income

Check your income by gathering all your income papers, including salary slips, interest certificates, and proofs of freelance work. This will give you a clear picture of your total taxable income, helping you identify areas where you can reduce your taxes.

Know your tax bracket and file easily

First, find out your tax bracket to understand how much tax you will pay. You can use online tax calculators or ask a financial advisor for help. Then, plan your deductions accordingly. When it's time to file, do it electronically. E-filing is faster, reduces errors, and gets your refund quicker.

Equity Linked Savings Scheme (ELSS)

Investing in Equity Linked Savings Scheme (ELSS) can help you save taxes. However, keep in mind that your money will be locked in for 3 years. Additionally, ELSS is a riskier investment because it's tied to the stock market, which can be unpredictable.

Save tax with health insurance

Buying a health insurance policy can help you save on taxes. You can claim a tax deduction for the amount you pay as a premium, under Section 80D. This can help reduce your taxable income.

Don't wait until last minute

Don't wait until March 31 to invest in a tax-saving mutual fund. If the website crashes or you miss the deadline, your investment won't qualify for a tax deduction for that financial year. Invest early to avoid last-minute hassles.