Tax Saving Tips: While filling ITR, most people feel that a lot of their money is being deducted in tax because they do not do Tax Saving Planning for the whole year. In such a situation, it is important to do tax planning for the entire year before filing ITR. If you have planned in advance, then you will be able to use tax-saving tips well and save more tax.
Tax Saving Tips: Most people calculate their tax only while filing ITR. In such a situation, they come to know that their tax liability is much higher than they had imagined. In such a situation, he tries his best to save taxes, but that is not enough. Today we are telling you 3 such tips, by which you can save more tax on your own (Tax Saving Planning). Also, let us tell you that these are those tips, about which very few people know. However, these are not last-minute tips, but you need to plan in advance.
Book long term capital gains smartly
Most of the people while booking profit from a mutual fund or stock market takes this care to book the entire profit in one go. For example, after 4-5 years, only once a strong profit is deducted. In this case, the tax burden falls on them. Please note here that long-term capital gains up to Rs 1 lakh are not taxable in a financial year. In such a situation, instead of booking profit once in 4-5 years, keep booking a little profit every year, so that your profit remains tax-free.
Make profit even from capital loss
As most investors know, a short-term capital loss can be adjusted against short and long-term capital gains. However, a long-term capital loss can be adjusted only with a long-term capital gain. In such a situation, you should also make some loss, so that by adjusting it, you can avoid tax. This may sound strange, but it is a beneficial method. However, you have to calculate how much loss you have to save your tax and you don’t have to suffer much loss. Loss booking allows you to weed out weak stocks from your portfolio or sell the stock of a loss-making company and buy the shares again later when the price falls.
Save Tax With 54EC Bonds
We all know that buying another house to save tax on capital gains from selling one house is a profitable deal, but one can also avail of the same benefit by investing in 54EC bonds. This is because no TDS is levied on the returns earned from these bonds. You can invest the capital gains from the sale of the house in different segments in 54EC bonds. Keep in mind, make this investment within 6 months of selling the house. These are bonds of PSU units, which are safe investments. However, there are some restrictions associated with these bonds. The first is that it cannot be transferred for 5 years, that is, the money will be locked for 5 years. Secondly, only up to Rs 50 lakh can be invested in this, and tax exemption can be given only up to a maximum of Rs 50 lakh.