Moneylife Smart Savers has devised a new tool though which you can calculate your taxable income that can be saved through the various sections of the Income Tax Act. The tool covers all deductible expenses and tax-saving investments for salaried individuals and self-employed professionals that is in the hands of taxpayer. You can use this tool to plan ahead and maximise your tax savings.

Many tax-paying individuals may not be making the best use of tax-saving investments and deductions available. There are several avenues through which individuals can save tax. You can save tax by investing in tax-savings investments or claim deductions on expenses under various sections of Income Tax Act. But the numerous products, deductions, and the sections they fall under can leave one confused. Thus many may end up underutilising the tax rebates that are available to them.

Apart from the investments and deductions claimed under Section 80C and the health insurance premium paid under Section 80D, the tool includes eligible deductions under Section 80E, 80G, 80GG, 80TTA, 80U etc.

All you have to do is enter the amount you have saved or plan to save for the current financial year in the various products listed and the tool will calculate the maximum taxable income you can save under various sections of the Income Tax Act.

There will be a help text which will guide you on the restrictions or the maximum permissible limit for a particular investment or deduction.

The Tax Savings Tool is free for all MSSN premium members. If you are not a member, please become a member today to avail of 11 other incredible benefits. If you are a premium member, you can use the tool by clicking here.