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Tax Planning: Top 7 Ways to Save Tax in 2023

It is that time of the year when your accountant is your dearest friend in the world. Yes, the financial year is round the corner. The smartest people have already set their previous financial straight so that the tax process is effortless.

What about the Next Financial Year?

There are loads of options when it comes to investing in tax-exempt choices. One can always consult a chartered accountant who will give you customized help when it comes to investments. But hiring an accountant is not always easy. Some people get swindled in the name of tax-saving. However, a careful reading online about tax-saving schemes can get you out of a soup and help you earn profit simultaneously.

So, where are such options.

Assuming that all the tax-saving advices has left your scratching your head, here are 7 easy tax saving tips to curb and keep a check on your ever-growing tax concerns.

First and Foremost, be a Sherlock Holmes on Your Expenditures, It Will Help You Now and Forever

It is a good practice to check your financial statements and gauge where the necessary funds are going. This tax-saving tip can cut out the unnecessary funding or at least reduce it since you are going to pay tax on it sooner or later.

This will save you a whole lot of trouble not only with respect to your taxes but also your finances in the long term can see a healthy and steady growth on your finances.

Invest in a Good Accounting Software. It is the Need of the Hour

This tax saving tip is relevant to small and medium scale business owners. With GST scaring businesses to death, it is better to go for an accounting software that helps you keep a track of all the bills that are generated at the time of business.

During business hours, piles and piles of paperwork are generated. Doing a last minute treasure hunt for bills will not make you or your accountant a happy person. Let alone that one of the bills slips their notice.

There are a range of accounting software that include GST, that are available in the market. One can research and choose which one is best suited for the organisation.

Invest in a Good Health Insurance Policy

What can be better than insuring the health of you and your family and gaining a tax benefit from it. Isn’t it great?

In current times many, if not all, companies offer health insurance plans at competitive rates that have tax saving benefit in them. It is best to scrutinize one that will suit your pocket as well as your taxable income.

With this tax-saving tip you can show your family how much you care and gain a tax benefit on it.

ELSS Schemes Are Great for Tax Savings

This tax-saving tip is one of the best yet. Equity linked saving schemes are great for individuals who have a low risk appetite. In fact, it was made for salaried persons who want to invest in good tax saving schemes. The highlight of ELSS is you can opt for different payment plans like lumpsum or systematic investment plans (SIP)

There are many ELSS offers in the market like ULIP that are doing great in the current market scenario. Investing before the next financial term begins reduces burden on tax cuts.

Your Housing Loan or Rent Receipts Are In Demand At This Time Of The Year

Although it is not a hundred percent fool proof option it is one that guarantees some respite to tax payers. If you are paying off a housing loan or pay rent, you can easily claim them for tax benefit.

Negotiating on the Salary Structure

For salaried persons in organizations, here is a a professional tax saving tip. When joining a new organization, it would be ideal to negotiate on a low basic pay structure as it is taxable. In return you can request to increase components that a non-taxable in the salary structure like leave travel allowance or dress allowance.

Also Read: 5 Easy Ways to Save Money

National Pension Scheme or Personal Provident Fund Are Here to Save the Day

If you really want good returns that are tax-free, you can opt for the national pension scheme or personal provident fund. Both these are great tools to save your finance from the tax axe.

These options have the largest tax exemption benefit and give respite to the tax-payer at the time of need.

No matter which tax-saving tip you choose, make sure you study the risk level and the highlights of each option you are willing to invest in and how much percent of tax-free returns you might get. This way you can save tax and gain a good amount of profit from your investments.

Ajeet Sharma, the founder of Financegab and a well-known name in the field of financial blogging. Blogging since 2017, he has the expertise and excellent knowledge about personal finance. Financegab is all about personal finance which aims to create awareness among people about personal finance and help them to make smart, well-informed financial decisions.


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