Income Tax Saving for FY 2023-2024

Income Tax Slabs in India
In the Indian taxation landscape, income tax adheres to a sophisticated slab-based structure, wherein individuals encounter diverse tax rates contingent upon their income brackets. These tax slabs undergo meticulous periodic revisions by governmental authorities to synchronize with prevailing economic dynamics. Presented below are the income tax slabs pertinent to individual taxpayers (below 60 years) for the fiscal year 2023-24:
1. Income up to ₹2,50,000: No tax
2. Income from ₹2,50,001 to ₹5,00,000: 5%
3. Income from ₹5,00,001 to ₹10,00,000: 20%
4. Income above ₹10,00,000: 30%
A health and education cess of 4% applies to the total tax payable.

Tax-Saving Tips

1. Utilize Section 80C: Unlock Maximum Savings with Section 80C: Delve into a range of tax-saving options including the Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS), National Savings Certificate (NSC), and beyond. These investments qualify for deductions under Section 80C of the Income Tax Act, paving the way for potential savings of up to ₹1,50,000.

2. Invest in Health Insurance: Claim Tax Benefits on Health Insurance Premiums: Enjoy deductions under Section 80D of the Income Tax Act for premiums paid towards health insurance policies covering yourself, your spouse, children, and parents

3. Home Loan Repayment: Maximize Home Loan Benefits: Repayments towards the principal amount of your home loan qualify for deduction under Section 80C, whereas the interest paid is eligible for deduction under Section 24(b) of the Income Tax Act."

4. Donations: Elevate Your Impact: Supporting eligible charitable institutions or specified relief funds not only embodies generosity but also unlocks avenues for tax deductions under Section 80G of the Income Tax Act."

5. House Rent Allowance (HRA): Cultivate Your Benefits: With the inclusion of HRA in your salary package, seize the opportunity to claim exemptions on the HRA received, contingent upon fulfilling specific conditions."

6. NPS (National Pension System): Supercharge Your Savings Journey: Step into the National Pension System (NPS) to elevate your tax advantages. Contributions to NPS not only offer deductions under Section 80CCD(1B) but also enhance your tax-saving potential, going beyond the ₹1,50,000 limit set by Section 80C.

7. Interest on Savings Account: Interest earned on savings accounts up to ₹10,000 is eligible for deduction under Section 80TTA.

8. Educational Loans: Interest paid on educational loans for higher studies qualifies for deduction under Section 80E."

Through strategic utilization of these provisions within the Income Tax Act, taxpayers can effectively minimize their tax burden and enhance their savings potential.