Taxpayers join investing spree to reduce tax burden

Tribune News Service

Ludhiana, March 16

To reduce tax burden by availing the opportunity to invest before March 31, investors have started their tax planning by investing in LIC, tax saver mutual funds, tax saver bank fixed deposits, etc., in the current ‘recessionary’ trends.

On the one hand, a slump is being seen in the market due to overall recession while on the other, tax-payers are leaving no stone unturned to invest in order to reduce tax burdens.

Mantosh Gupta, a chartered accountant, said: “March 31 is the last date to do tax planning, i.e., to invest in LIC, tax saver mutual funds, tax saver bank fixed deposits and NPS (National Pension Scheme). An amount of Rs 1,50,000 can be invested in LIC, tax saver mutual funds, tax saver bank FDR’s, etc.”

“Similarly, Rs 50,000 can be invested in NPS. The benefits for mediclaim can be availed up to Rs 75,000. A large number of residents are investing to avail tax benefits before the end of March,” Gupta added.

All these avenues are available only if reflected in an investor’s bank statement till March 31 to reduce tax liability for FY 2022-23. This saving is within the provisions of law so every tax payer can save his/her tax by investing.

Keeping this in mind, the corporate houses of the city are also making huge investments. Though the percentage of benefits might be two to three per cent of the invested amount, the benefits become huge in absolute numbers for big investments, said a health policy agent wishing not to be named. A businessman said every trader prefers to reduce his tax burden and get benefits by investing.

“Recession or no recession, one prefers not to pay exorbitant in the form of taxes to the government”, he added.