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Maximize Tax Savings with a Tax Consultant in Durgapur

Every individual whose income exceeds the basic exemption limit is liable to pay taxes in India.

This limit is set by the government and anyone whose annual income is more than the total gross income of Rs. 2,50,000 (as per the old regime) and Rs. 3,00,000 (as per the new regime) has to pay tax based on the rate set by the government.

An individual can reduce the amount of tax payable by using strategies to shrink their taxable income and use the tax deductions and credits wisely.

Seeking advice from a tax consultant in Durgapur can help you plan your taxes proactively and dig out opportunities to maximize your tax savings.

Filing your tax deductions can be daunting for someone who does not have enough knowledge about the terms set by the government. On the other hand, when you hire a tax consultant, you ensure that your tax filing is in the hands of someone who does that professionally.

Qualified tax agents can help you file your tax deductions efficiently and get the most out of your tax returns. In this blog article, you will gain further insights on the following topics:

All about Tax planning,

Strategies for maximizing tax savings,

Working with a tax agent in Durgapur.

So, let's start without any further adieu with,

All About Tax Planning

Tax Planning is the process of making sound financial decisions in order to reduce tax liabilities, and optimize the use of tax exemptions, tax rebates, and other benefits.

The process is not a one-time process, rather it goes around the year, where tax consultants or a CA in Durgapur usually guides the taxpayers here, to make financial and business decisions that reduce tax incidences.

Tax planning also includes using the beneficial provisions stated under the laws to claim maximum tax deductions. Now, there are three types of tax planning for the taxpayers of India. These are:

Short and Long-range Tax Planning

Short-range tax planning refers to the planning done usually at the end of a financial year, and therefore, any liabilities are paid off immediately. On the contrary, long-range refers to the assessments undertaken by a tax consultant in Durgapur, which are not immediately paid off.

Permissive Tax Planning

This type of tax planning refers to the practices undertaken under the country's taxation provisions.

Purposive Tax Planning

Purposive Tax Planning as the name suggests is done by keeping in mind a specific financial objective. This means that an individual can make investments in order to get returns that may or may not fall under taxable income.

The purpose of tax planning is to ensure that an individual can reduce the amount of tax payable or can claim a maximum of their tax return.

Strategies for Maximizing Tax Savings

Investing in Tax-Saving Instruments under section 80C

This is one of the most popular tax-saving strategies where section 80-C provides a deduction of up to 1.5 lakhs, which individuals can claim when they make investments in specific instruments. You can Google, "chartered accountant near me", and hire one, who can provide you with detailed advice on this.

Further, this section holds investment instruments like PPF (Public Provident Fund), where the interest rate and the maturity amount are tax-free. Other investment instruments that fall under this category are National Savings Certificates, Life Insurance Policies, and National Pension Systems.

Monetary benefits from any of these sources are exempted from taxable income, and you can, therefore, use these instruments under the guidance of a tax consultant in Durgapur and get benefits.

Interest on Educational Loans

If you have an educational loan, you will be paying interest on it. Therefore, the interest you will be paying for such a loan is deductible under the tax laws. This deduction, regardless of the amount, can be claimed for eight financial years, counting from the year of the first repayment.

Interest on Home Loans

In India, you can claim a tax deduction on the interest paid for the home loan as well as on the principal amount you are paying back. Now, individuals can have a self-occupied property or a rented property.

For the former, the maximum amount allowed for deduction is up to rupees 2.5 lakhs per financial year. And in case you have a rented property there is no upper limit for that mentioned in the laws.

For the repayment of the principal amount, there is a maximum deduction allowed up to 1.5 lakhs.

So, these are some of the strategies you can use under the guidance of a CA in Durgapur, or a tax consultant. If you are not able to find your preferred strategies, a tax consultant will further help you identify proper strategies that fit well with your financial background.

Working with a tax agent in Durgapur

Before, hiring a tax consultant you need to keep the following points in mind. These are:

Seek out recommendations

Find out for recommendations from your fellow partners or friends who are on the same plane as yours.

Look out for certified ones

While searching for a tax consultant in Durgapur, always keep an eye on their certifications. Go for the ones who are Certified Public Accountants (CPA), or Chartered Accountants (CA).

Have experience with your stuff

Every individual has their taxation aspects, therefore, it is better to hire the ones who have experience in filing taxes for people who are in the same field as yours.

Keep Communication Open

Before hiring a tax consultant do a little research on their background, and ensure that they conduct smooth communication with their clients. Communication is a crucial aspect of filing tax returns and accurately mentioning the deductions.

By working with a certified tax consultant you can get the maximum benefit from claiming your deductions.

Wrapping Up

Filing taxes yourself can be a daunting process, but when you have the best tax consultant in Durgapur the process becomes much easier. They will help you identify the right strategies to claim deductions and save your hard-earned money.

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