No time, and No Money… yet want to save on taxes? Check out these quick tips!

No time, and No Money… yet want to save on taxes? Check out these quick tips!

No time, and No Money… yet want to save on taxes? Check out these quick tips!

by March 28, 2017
save on taxes

A salaried professional, an entrepreneur, a freelancer – You could be anyone but you must pay income tax depending on the income slab that you fall into. A financial year in India is the period from 1st April of a year to the 31st of March of the next year. For example, FY2016-17 would mean 1st April 2016 to 31st March 2017.

The earnings during the period in the form of salary, interest of FDs, passive income through other investments are all subject to taxes. However, there are provisions to save on taxes as well. While most of us may be aware of some of these provisions, we often tend to wait until the very last moment to get our foot in the door and save our bit.

Today, we are just three days away from the financial year end. Have you saved as much tax as you possibly can? I am sure many of you would not be able to give an affirmative reply to this question.

However, it is also the month end and it is common to not have money at disposal to make a sudden investment. In such a case, what are the options available to save taxes?

I would like to list a few of them here:

Tax saving Medical Bills

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1. Medical Bills: I am sure you might have spent on medical bills during the financial year. Have you submitted them to the company and claimed a deduction (to the extent of Rs. 15, 000)? If not, you can submit these bills and claim an exemption. Have you kept these bills handy?

2. Telephone or mobile bills: If you have a post-paid connection and use it for official purposes, you could claim an exemption as per the company policy. Most of the companies allow an exemption of up to Rs. 2000 per month or Rs. 24000 for the year. That’s a good amount to save on taxes, isn’t it?

Tax saving Childrens Education

3. Children’s education allowance/ Children hostel allowance: If you are a parent and you child goes to school, you can claim an exemption of Rs. 100 per child per month for a maximum of two children. If the child stays in a hostel, you could claim an exemption to the extent of Rs. 300 per child per month, again for a maximum of two children.

For parents with two children, they could save taxes to the extent of Rs. 2400 per annum and if the children are in a hostel, the maximum exemption claimed could be Rs. 4800 per annum. So, dig out the school fee receipts right away.

4. Exemption on Conveyance: If your job requires you to travel and your company does not give you a transport allowance, you can claim an exemption of up to 100% of the amount spent on such travel for official purposes. All you must do is produce the actual bills.

5. Exemption on Research Material: If your job requires you to do a lot of research and if you submit the actual bills towards purchases made in this regard (of newspapers, journals, magazines, books, etc.), some companies offer a 100% exemption on taxes for such purchases. Do check your company policy to see if you can claim some tax exemption using this route.

There are many companies which offer various other kinds of exemptions to employees to help them to save on taxes. This could be allowance on purchase of formal attire required for the job, it could be daily allowance because of the nature of the job and the travel required every day, and so on.

I recommend you to check your company policy to see if there are any such exemptions available to you. If yes, just produce the actual bills and claim your exemption.

Tax saving Conclusion

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Even if you do not have money to invest right away, you can still use the above avenues to save on tax. I highly recommend that you must do so and invest the savings into an ELSS in the first week of April itself so that you can get the tax benefit and also get good returns on investment in the next financial year.