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11 Easy End of Year Tax Tips to Increase Your Tax Refund

Updated on: 09 Aug, 2023 12:21 PM

With 2017 coming to an end, let's make some smart tax moves to help increase your refund next year. Only 3 months are left to lower the burden of 2017-18 taxes. But, once the financial year ends, so do the most of your opportunities to reduce your 2017 taxes.

So, here is list of top 11 easy year-end tax tips for you-

  1. Invest for your family
    Did you know that apart from yourself, you can also invest in LIC and PPF, for your spouse and children and claim the tax deduction? Yes, you heard it right. As per section 80C, you can claim the LIC premium as well as PPF amount invested for your family.
  2. Avail Transport Allowance
    If transport allowance is a part of your CTC structure then it is like a bonus for you.You don't have to submit any bills or proof to avail this tax benefit. It is tax exempt @Rs.1600 per month.Thus, by availing this allowance you can save tax on Rs. 19,200 per annum maximum.
  3. Do not sell your shares
    If you are investing in shares then it is advisable to make it long-term investments i.e. do not sell before 12 months from the date of purchase. The reason being, long-term capital gains on the sale of shares is exempt under sec 10 provided STT is paid at the time of their sale.So, avoid going for short-term investments and enjoy tax-free investments.
  4. Avail Rent paid deduction
    Living in a rented house and not receiving HRA from your employer? No worry, you can still claim tax deduction of rent paid under section 80GG up to Rs. 60,000/-. Apart from the salaried employees, this deduction can also be claimed by the self-employed person who does not own any residential accommodation at the place where they currently reside.
  5. Invest in 5 year Time Deposit
    It is recommended to not to go for the Recurring Deposit as it is not eligible for Deduction under Section 80C instead invest in 5 year Time deposit in Post Office which is eligible for claiming the tax benefit under 80C.
  6. Declare your Investments
    Fill Form 12BB (investment declaration form) and submit to your employer to ensure correct TDS deduction during the year. Make sure you fill it in a planned way so that while filing return, you need not pay taxes at that time. It is one of the best ways to increase your take-home salary as this form enables your employer to correctly figure out the amount of income tax which is to be deducted from your monthly pay.
  7. Analysis of eligible deductions
    For detail analysis of eligible deductions, study your last year’s tax return and answer this question – Are there any deductions for which you have not done anything till date? Then understand about the new deductions for which you can take advantage of. For this, you might take help from a detailed deduction guide by tax2win. Click here
  8. Avail HRA exemption
    If HRA component is included in your CTC and you stay in your parents’ house then also you can claim it. Surprised? Yes it is true. But just make sure your bank statement must validate the payment of rent to your parents and your parents must add the rental income received from you in their ITR
  9. Withdrawal of EPF
    Thinking of changing job? Then apart from other formalities, your Employee Provident Fund amount needs your attention too. Don't forget to transfer your account to the new employer and still if you are still planning to withdraw it. Then, ensure the first withdrawal is after five years, otherwise, it would be taxable
  10. Invest in 5-year Fixed Deposits
    Thinking of investing your money in Bank FD? Ensure it is the 5-year tax saving FDR amounting to Rs. 1, 50,000 to get maximum tax benefits under section 80C. Beware! The other FDs are not eligible for deduction
  11. Check your Form 16
    When you will receive your Form 16 then do check all your investment details are included on your Form as per the Form 12 BB submitted by you. Even employers can make mistakes! Further, make a list of all those investments which are not included in your Form 16 to avoid last minute rush at the time of filing your ITR.
    Hope with the help of these tips, you make the new year a happy tax free year too!
CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.