Income Tax Return Filing

To calculate tax on your income, you need to follow these steps: Determine your total income: Calculate your total income for the financial year. This includes income from all sources such as salary, business, rent, interest, capital gains, etc. Deductions under Section 80C: Deduct the amount of investments made under Section 80C of the Income Tax Act, 1961 , such as Provident Fund (PF) contributions, Public Provident Fund (PPF), Equity-Linked Savings Scheme (ELSS), National Pension System (NPS), and Life Insurance Premium, up to a maximum limit of ₹1.5 lakh. Other deductions: Deduct other eligible deductions such as home loan interest, medical expenses, and donations made to charitable organizations under various sections of the Income Tax Act. Calculate taxable income: Subtract the total deductions from your total income to arrive at your taxable income. Apply tax slabs: Based on your taxable income, apply the relevant tax slab rates as per the Income Tax Act. For instance, for...

Tax saving mutual funds or Equity linked Saving Schemes (ELSS) help you to save income tax under section 80C of the Income Tax Acts . You can invest a maximum of Rs 1.5 Lakh in ELSSs and claim tax deductions on your investments every financial year. Are you Interested? Before procedding further, you should first familiarise yourself with ELSSs. Tax Saving mutual funds or ELSSs invest in stocks. Therefore, they have very high risk. You should be aware of this aspect, expecially if you are a first-time investor in equity mutual funds. Compared to your usual investments like Public Provident Fund, ELSSs do not offer gauranteed returns. You may even suffer losses in a bad market. why should you invest in ELSSs? One, These schemes have the potential to offer higher returns. As you know, these schemes invest in stocks. And stocks typically offer higher returns over a long period of time. For example, the ELSS category offered an average return of around 15% over 10 years. ...