Income Tax Saving: Last minute tax saving options for FY 2019-20

Updated: Jun 19, 2020 5:26 PM

The government had extended the last date till June 30, 2020, for the investors to save tax for FY 19-20.

 save tax for FY 2019-20, tax saving options, ITR filing last date FY 2019-20,tax-saving investment options, taxpayersThe government has extended the ITR filing deadline for FY 2019-20 to November 30, 2020.

By Vishwajeet Parashar

For those taxpayers who failed to complete their tax planning exercise for the financial year 2019-20 by March 31, 2020, the last date is nearing. Even though there is no change in the financial year, the taxpayer will still be able to save tax for the FY 2020. Due to nationwide lockdown, many of us were unable to make a payment towards various tax-saving investment options.

The government had extended the last date till June 30, 2020 for the investors to save tax for FY 19-20. One has, therefore, a few days left to claim tax benefits under Section 80C, 80D, and 80G.

For Protection

Adequate life insurance coverage is a must for all those who have financial dependents. In exceptional times like COVID-19, we all need exceptional protection covers which can safeguard our family finances for any uncertainty. If one is looking to buy adequate life insurance, Term insurance is the solution since it is the most affordable form of

Life insurance

For saving tax and growing wealth, you can start a National Pension Scheme (NPS) account. NPS is regulated by PFRDA. It is a tool to accumulate lumpsum and monthly income for living life post-retirement.

If you are looking for growth with liquidity than you can think of ELSS mutual funds (Equity Linked Saving Scheme). It comes with only 3 years of the lock-in period.

If you are looking for fixed income and ready to lock-in your money for 15 years then you can think of putting your money in Public Provident Fund (PPF).

Save Tax on Health Insurance

Any individual who pays the health insurance premium for self, spouse, or dependent children can claim tax benefits under section 80D of Income Tax Act of up to Rs. 25,000 (for age below 60 years).

Donate and save tax

During the lockdown, many of us made donations to PM Cares Fund on which one can claim deduction under Section 80G. Donations can be made in the form of a cheque or by a draft while 100 per cent of the amount that is donated or contributed is considered eligible for deductions.

Income Tax Returns FY 19-20

The government has extended the ITR filing deadline for FY 2019-20 to November 30, 2020. The Central Board of Direct Taxes (CBDT) has issued ITR 1 or Sahaj Form in January 2020, however, they have been re-issued now, to make income tax deductions or exemption claims for payments made towards tax-saving investments made between 1 April 2020 and 30 June 2020 under the DI Schedule due to the tax-saving deadline extension.

So don’t wait for any further and in case you gave your FY 19-20 tax saving a pause because of lockdown, utilize this opportunity before your miss it.

(The author is Chief Marketing Officer, Bajaj Capital)

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