Tax planning in India involves organizing your finances in a way that minimizes your tax liability within the limits set by the Income Tax Act. Some steps you can take to reduce your tax liability include:
Investing in tax-saving instruments like Public Provident Fund (PPF), National Savings Certificate (NSC), and Equity-Linked Saving Scheme (ELSS).
Taking advantage of deductions and exemptions available under the Income Tax Act, such as deductions for home loan interest, investments in National Pension Scheme, and medical insurance.
Splitting income between family members to take advantage of different tax slabs.
Keeping accurate records and maintaining proper documentation of all financial transactions.
Consulting a tax professional or financial advisor for personalized tax planning advice.
It is important to note that tax laws and regulations are subject to change, so it is a good idea to stay informed about any changes that may affect your tax liability.
