The portal for IT filings is open and it is important to know how to claim tax benefits. I am a businessman and have been filing IT returns for the last 10 years. From my experience, I can tell that we should be wise while filing our IT returns. Since the GST implementation, IT filing has become important, and the procedure has been changed. It is important to know the new procedures.

Currently, an employee should make an IT declaration at the start of a financial year. It is the details about the investments that a person is planning to make in that particular financial year. The proof of investments must be provided at the time of IT filing. Every month a fixed amount is deducted toward tax from the salary and the extra tax deducted will be refunded to the account at the end of the financial year.

As per the new regulation, income above 2,50,000 will be taxed. In the income above 2,50,000 suitable investments can be made to claim tax befits. House loan interest, pension funds, life insurance, etc. are also eligible for claiming benefits. Other than these, we can make NGO donations, charities, or donate to any other registered charitable organizations. Even online donations to NGOs and other charity organizations are eligible for tax benefits. Proper proof of these investments must be provided when required. It must be noted that any donation of more than 2000 should not be made in cash. Donations made in kind are also not eligible for tax deductions.

Some other investments eligible for tax deduction include bank fixed deposits, senior citizen saving schemes, insurance, national saving certificate, etc. Some of these investments are eligible for 100 percent tax benefits while some are only eligible for partial benefits. Compare different investments before the IT declaration and find a suitable scheme for you.