Although paying taxes is inevitable in life, you can minimise your load and prevent errors with correct income tax advice. Whether you work freelantically, self-employed, salaried, or under contract, knowing a few basic income tax facts about India will help you save both money and stress. We will post basic, useful income tax advice suitable for every Indian taxpayer on this blog.
1. One should know their tax slab.
Slabs form your income tax, thus your tax paid increases with increasing income. Right now, you have options between:
- Old Tax Regime (with deductions and exemptions) and
- New Tax System: reduced rates but no significant deductions
If you have many deductions—like 80C, HRA, etc.—the old system could be better. If not, the new government might help you to save money.
2. Get the most out of Section 80C
Investing in Public Provident Fund (PPF) under Section 80C entitles you up to ₹1.5 lakh.
- Equity Linked Savings Scheme, ELSS
- Policies for life insurance
- EPF, or Employee Provident Fund
- Children’s tuition expenses
👉 Advice: Make these investments not at last but rather at the beginning of the year.
3. Avoid Ignoring Other Deductions
Apart from 80C, you could also be entitled:
- 80D – Family and personal health insurance
- 80E: Interest on an education loan
- 24(b) – Up to ₹2 lakh, home loan interest
- 80G: Contributions to qualified nonprofits
Advice: Save receipts and payment evidence for every deduction.
4. File Your Returns on Time
It’s advisable to file your ITR even if your income is less than the taxable limit:
- You are able to forward losses.
- It records your finances (which is important for visas and loans).
- TDS returns are something you can claim.
Advice: Don’t wait until the deadline. Early file to prevent mistakes or last-minute rush.
5. Examining Form 26AS and AIS
Form 26AS and AIS (Annual Information Statement) document all tax deductions made on your behalf.
👉 Advice: Before submitting your return, always make sure the TDS information match your records.
6. Use a consultant or CA depending on need.
Should your tax case centre issues like:
- Wealth from real estate or stocks
- Foreign or freelancing income
- Various income sources
- Commercial income
See a CA or tax consultant to prevent errors and fines.
7. Invest Your Refund Wisely
Should you receive a tax refund, avoid mindlessly spending it.
Use it to build an emergency fund, invest in SIPs, or pay off debt.
Thoughts on Final Notes
You can save thousands of dollars annually with the right income tax advice. Start early, keep your records orderly, and keep informed about any rule changes. Tax planning helps to develop better financial habits as much as it helps to save money.
