5 Reasons To Start Tax Saving In 2021
April 23, 2021
As per section 80C, you can invest upto Rs. 1.5 lakh each year - that is Rs.12,500 per month, that is exempt from tax, which you can invest and save for the future.
You Can Save Tax On Investments
So you can invest upto 1.5 lakh - instead of doing it in one shot at the end of the year, it makes more sense to do it in nominal amounts from the start of the year.
But - Start Early
When you start your tax saving journey early, you not only save money, but also the stress and hassle of doing things at the last minute.
No Year-End Hassle
HR deducts a certain amount from your salary during Jan-Feb-March to adjust tax liability for the year. To get your full salary, complete your tax saving investments early.
Avoid Massive Deductions
When you understand what deductions you can make under Sections 80C and 80D, you have more room to plan your investments and make the right choice, whether it’s PPF, NSC, or ELSS.
When you invest early, you are giving your money more time to grow, rather than letting those funds sit idle in your bank account.
Make Your Money Grow More
By declaring your investments to your employer at the onset, they can deduct the correct TDS. This spares you the hassle of seeking refunds after filing your returns.
Avoid Paying Extra Taxes
We are living in uncertain times - so avail the benefit of tax saving and do it at the earliest!
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.