Under Section 80C of the Income Tax Act, many tax saving options are available, such as - Public Provident Fund (PPF), Equity Linked Saving Schemes (ELSS), National Savings Certificate (NSC), and Employees Provident Fund (EPF). If you do not use them properly, you may be deprived of a deduction of up to ₹ 1.5 lakh every year.
If your salary includes House Rent Allowance (HRA) and you live on rent, then you can claim tax exemption on rent. But if you do not give rent receipts or necessary documents to your employer, then this exemption will not be available.
Health insurance premium for yourself, your family and parents is tax exempted under section 80D. There is a provision of even more exemption in this section for senior citizens. If you do not take advantage of this, then your tax liability may increase.
Investing in National Pension System (NPS) gives an additional exemption of ₹ 50,000 under section 80CCD (1B). This exemption is in addition to the limit of ₹ 1.5 lakh of section 80C. By not adopting this, you can lose a big opportunity to save tax and save for retirement.
If you wait till March for tax saving, then it can be harmful for you. Plan from the beginning of the year and invest from time to time, so that you can get the benefit of tax-free interest.
This information is based on expert opinion. Consult a certified advisor before making any investment.