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With the financial year 2019-20 coming to an end, it becomes difficult for most of us to pay the tax. Inefficient tax-planning can land up you in a tough situation and impact your regular financial commitments and goals. Therefore you are advised to have a well-planned tax saving in the start of the financial year and implement it throughout the year to avoid any last minute hurry. Ideally you must have a tax saving plan by now but if you are still struggling with it then this article is for you where we’ll discuss various ways to save income tax in India in 2019-20. 1. Use all general tax saving options available Before you start looking for lucrative tax saving options, make sure you have already utilized the popular and general ones like investment in Tax saving FD, Provident fund, Mutual funds etc. You can invest upto Rs. 1,50,000 per annum in any of these as per your suitability and be eligible for the tax deduction under 80C of Income-tax. You can invest in the National Pension Scheme to get tax benefit under Section 80CCD and purchase a health insurance policy for self or family members and parents to get a deduction under Section 80D. So basically, use the regular options first to reduce your tax liability. 2. Planning for your dream home? Avail additional tax benefits If you are planning to buy your dream home then don’t wait anymore as this might help you in saving tax. If you take a home loan in FY 2019-20, you will get a tax-deduction benefit of up to Rs 1.5 lakh under Section 80EEA for payment of interest on that loan. The benefit is available only for a self-occupied property and you should not own another residential property. This benefit is over and above the tax-deduction benefit of up to Rs 2 lakh available under Section 24 for loan interest repayment. Also there is tax deduction benefit under Section 80C of up to Rs 1.5 lakh for home loan principal repayment during the year. So, if this is your first home, get additional long-term tax benefit under Section 80EEA. Please check complete eligibility criteria before applying. 3. Claim tax deduction on parent’s medical expenses If your parents are senior citizens then taking a new health insurance policy can be costly. But this doesn’t restrict you from claiming tax deduction on their medical expenses. So if your parents are senior citizens and don’t have a health insurance policy then you can claim a tax-deduction benefit against the payment of their medical expenses of up to Rs 50,000. Don’t forget to keep all the bills/invoices handy as proofs to claim the benefit. 4. Avoid long-term payment commitments to save taxes While planning you tax saving strategy make sure you read all the investment related details carefully and avoid products that are not in sync with your financial plans as they might have long-term commitments. We tend to make such mistakes in last minutes when we are in a hurry to invest but later we realize that we can’t continue with it which leads to financial loss rather than benefit. Hence, don’t make rash decision and do your tax saving planning on time to avoid such situations. A proper tax saving plan can be made with little research and proper guidance from a professional. If you need any help with your tax-saving strategy, don’t hesitate to contact us. To know more visit www.rnm.in