Income Tax Saving Tips: There are few days left in the goodbye of the financial year 2021-22. You don’t have time for tax saving. This work will have to be completed in a day or two. Although the work of tax saving continues throughout the year, but if you have not been able to do this work due to some busyness, then get this work done immediately.
In the last days, there is a lot of hustle and bustle while preparing a tax saving plan, due to which there is a risk of some mistake. Here we are discussing some such things, in which investors often make mistakes and they have to face problems later.
While doing tax planning in the last days, we often invest the entire money in one scheme or in the same type of plan. One should avoid investing in the same plan or same type of plan. It is wise to invest in plans of different nature. Because, investing in the same plan increases the risk. For example, we should not invest the entire money in life insurance and invest in things like retirement funds, gold.
Pay attention to the insurance plan
Most of the people take an insurance plan in the month of March, because while taking insurance, our mind is less about safety and tax saving. That’s why many people do not pay attention to the terms and conditions related to the insurance plan. Sometimes we buy the wrong plan. That is why it is important to buy insurance products very wisely.
To save tax, definitely calculate how much money should be invested in tax saving schemes. Note that if you are investing more money than necessary only in the scheme of saving tax. Many times investing more money spoils the budget of the house. So make sure to make an emergency fund.
Non-computation of tax liability
The tax liability is also different on different sources of income. Some of these incomes are also such on which tax can be saved. Therefore, while investing, make sure to calculate the amount of tax liability on all types of income. This will make it easier to know how much you have to invest to save tax.