Tax: These tips to save tax will come in handy in 2025, include them in financial planning

Tax Benefit: Tax planning is an important part of your financial planning. While preparing it, you have to keep in mind that how can you avail the maximum benefit of tax benefit i.e. tax exemption and what should you do so that the tax burden on you is minimized. This process is prepared on the basis of a person’s income, expenses, investments and other transactions that have the potential to save tax.

The primary goal of tax planning is to prepare a plan to pay minimum tax by combining tax deductions and credits. This is an important part of personal finance, whose job is to minimize the tax burden on tax payers while adhering to the legal limits.

Plan based on the changes in 2024

It is important to keep the changes in 2024 in mind while planning taxes for the assessment year 2025-26. This will help a lot in tax planning for 2025. Tax loss harvesting is a good tool in this. Under this, securities are sold after incurring losses, so that capital gains from the remaining investments of the portfolio can be offset to pay less tax. The impact of losses can be mitigated by subsequent profits and continuing tax benefits. By adopting this method, good profit can be earned in the long run by availing exemption of Rs 1 to 1.25 lakh on capital gains.

Reduce taxable income under section 80

Taxable income can be reduced under Section 80C of the Income Tax Act. For this, tax deduction of up to Rs 1.5 lakh can be achieved by investing in PPF, insurance premium, five-year fixed deposit, equity linked saving scheme and unit linked insurance plan. At the same time, by investing under NPS, you can get additional tax rebate of Rs 50 thousand.

Under the New Tax Regime, the increase in standard deduction from Rs 50 thousand to Rs 75 thousand will also benefit the salaried people. If the tax liability is more than Rs 10,000, you can get benefits by saving penalty etc. if the advance tax is paid on time.

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