Business News Desk, Tax filing date is getting closer. The process of filing income tax will also start from the month of April. Meanwhile, it is very important to do one thing before April. By doing this work, there can be savings in tax saving. Recently, while presenting the Budget 2023, Finance Minister Nirmala Sitharaman had increased the tax slab in the new tax regime. Under the new change, no tax will have to be filed up to an annual income of Rs 7 lakh on filing tax under the new tax regime. However, this limit has not been increased in the old tax regime.
Under the old tax regime, if a person files tax, then he will have to pay tax on taxable income. At the same time, in this tax regime, under Section 80C of the Income Tax Act, a rebate of up to Rs 1.5 lakh can also be obtained in a financial year. In such a situation, if you also have to file tax under the old tax regime, then tax can be saved by doing some work in the month of March itself, so that tax can be saved in this financial year.
Under the Old Tax Regime, 5% tax is levied on annual income from Rs 2.5 lakh to Rs 5 lakh and rebate is also available on annual income of Rs 5 lakh. In such a situation, income above Rs 5 lakh starts being taxed. If a person files tax under Old Regime and his income is above 5 lakh rupees, then he can invest money in tax saving scheme to save tax.
tax saving scheme
PPF i.e. Public Provident Fund can be used under the tax saving scheme. Under this, a minimum of Rs 500 and a maximum of Rs 1.5 lakh can be invested in a financial year. At the same time, this scheme has a maturity of 15 years. At present, 7.1 percent interest is being given annually in this scheme on compounding basis. Also, tax can be saved on the amount received and the amount invested under this scheme.