How to save taxes in FY23

• A family that plans taxes together, saves together!

Spread the income amongst the family members. You can avail of maximum tax exemptions and possibly attract a lower income tax slab.

For example, you may gift some amount to your (18+) kids, spouse, or parents, if they have a lower tax liability. The amount gifted to them may not be taxable or would be taxed at a lower interest rate.

• Make full use of available tax deductions (under the old tax regime)

Prepare a list of all the tax deductions allowed under the Income Tax act. For example, conveyance allowance and medical expenses up to a certain limit are deductions available to a salaried employee.

• Grab the all-in-one bumper deal- Invest & Save Tax

Saving tax by investing? Sounds like a dubious deal. Luckily, it isn’t! For example, investing in schemes like PPF or ELSS aids in creating a sizable corpus for the future as well as saving significant tax every year. You can invest up to Rs.1,50,000 every year in one or more schemes under Section 80C to avail tax benefit.

• Grab that extra slice

You can further reduce your taxable income by contributing to National Pension Scheme up to Rs. 50,000. Your employer can also contribute a similar amount.

• Don’t wait till the last month to save tax

Plan ahead for your taxes and maximise tax benefits.

For individual nature of tax implications, investors are requested to consult their tax advisors before investing.

Views and opinions contained herein are for information purposes only and should not be construed as investment advice/ recommendation to any party or solicitation to buy, sale or hold any security or to adopt any investment strategy. It does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. The recipient should exercise due caution and/ or seek professional advice before making any decision or entering into any financial obligation based on information, statement or opinion which is expressed herein.

Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to Rs. 1 Lakh). Trustee: Axis Mutual Fund Trustee Limited Investment Manager: Axis Asset Management Company Limited (the AMC) Risk Factor: The Sponsor is not liable or responsible for any loss or shortfall resulting from the operation of the scheme.

Mutual fund investments are subject to market risks, read all scheme related documents carefully.