Navigating tax season requires a grasp of taxable income calculation. Deductions like life insurance premiums, NPS contributions, health insurance, and standard deductions influence the outcome in Old and New Tax Regimes. This knowledge empowers effective financial planning, optimising tax savings based on your income and investment choices.
Understanding tax calculations is crucial during the filing season, as it allows you to manage your finances effectively
Utilise online calculators for ease but grasp the basics of how taxable income is calculated for a comprehensive financial strategy
Deductions play a significant role; be aware of applicable sections like 80C, 80CCD (1B), 80D, and others to reduce your tax liability
Differentiating between Old and New Tax Regimes is essential, considering exemptions and standard deductions
Carefully assess your investments and deductions to determine the taxable income and the corresponding tax slab
Plan wisely to maximise tax savings, considering the nuances of the chosen tax regime and available deductions
A well-informed approach to tax filing empowers you to make informed financial decisions and achieve optimal tax efficiency