Ben Franklin once famously said, “Our new Constitution is now established, and has an appearance that promises permanency; but in this world, nothing can be said to be certain, except death and taxes.”
Taxes can eat into your earnings, your savings, and even your retirement plan if you aren’t careful and prepared. If you talk about budgetary efficiency, planning your taxes is at the top of the list in terms of ways to ensure you aren’t wasting money. This isn’t to be confused with tax fraud and is a legitimate way of using the system to ensure you pay the government the least possible amount, without breaking any rules. This includes utilizing tax exemptions, deductions, and benefits, as well as every other possible avenue like engaging in environment-friendly activities to earn tax credits.
You can also invest in tax saving instruments which are listed under different sections of the IT Act of 1961, where the government of India has provided a number of ways for individuals to save on their taxes. These include deductions available under Section 80C to Section 80U of the Income Tax Act of 1961 which assist in mitigating liabilities which would otherwise be directly deducted from income.
