Tax planning for FY 2023-24: Last date is March 31, don’t make these mistakes

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Key Points

The tax-saving investments of an individual should be part of his overall financial plan..

Poor financial habits and biased advice push taxpayers to make sub-optimal investment decisions..

On adding up all these, many taxpayers will discover that they have already crossed the Rs 1.5 lakh deduction limit under Section 80C..

If you have to invest Rs.50,000-60,000 under Section 80C before 31 March, put only Rs.15,000-20,000 in ELSS and the rest in a safer option such as PPF, NSCs or tax-saving FDs...

The income from fixed deposits and NSCs is fully taxable, so the post-tax returns are very low. Gains of up to Rs.1 lakh from ELSS funds are tax-free..

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