The Income Tax Return (ITR) filing season is back. While you must be preparing all the documents required for filing your ITR FY 2021-22 (AY 2022-23), a following a tax discipline will take you a long way. This tax discipline is identifying the right tax investment and proper tax planning.
Sujit Bangar, Founder of TaxBuddy.com in an exclusive Q&A with Reema Sharma of Zee Media, shared his inputs on how to do tax planning in totality which will ensure minimum tax outgo, secure life & health and wealth creation together. (Also read: Filing ITR as a freelancer? Know the rules that apply in India)
Bangar shares his expert views on 3-point checklist to help you identify the right tax-saving investments
A. The first step of tax planning should be aimed at analysing how much of tax you have already saved! This is important because our everyday expenses like money spent on child’s education, life insurance, health insurance or buying a home have tax saving consequences. We must analyse them properly.
B. Second step should be to ascertain how much scope you have for further investment for tax saving in the 1.5 lakh brackets provided under 80C. Once You know how much tax You have already saved, you may try to push further to exhaust the rebate under of 80C.
C. The third step is to look for good investment option. While doing so, you must first identify your life goals and your risk appetite.
Here is the new individuals Income tax slab effective for FY 2021-22 ITR filing
|S. No.||Income slabs||Income tax rate|
|Up to Rs 2.5 lakh||Nil|
|Between Rs 2,50,001 and Rs 5 lakh||5 percent|
|Between Rs 5,00,001 and Rs 7.5 lakh||10 percent|
|Between Rs 7,50,001 and Rs 10 lakh||15 percent|
|Between Rs 10,00,001 and Rs 12.5 lakh||20 percent|
|Between Rs 12,50,001and Rs 15 lakh||25 percent|
|Above Rs 15 lakh||30 percent|
For the FY 2022-23, tax payers like the last two years, opt for the new tax regime or stick to the old tax regime. The tax slab under the New tax regime will be same for all categories Individuals & HUF upto 60 years of age, Senior citizens above 60 years upto 80 years and for Super senior citizens above 80 years.