The month of March is very special in India. In this month, along with the weather, many schemes related to banks and the Income Tax Department are started. The Income Tax Department is under pressure to collect tax in March as it is the last month of the financial year. The department gives attractive offers to the taxpayers to collect tax. Along with the Income Tax Department, banks also give affordable offers to customers to meet their targets.

March is a special month for income tax saving.

The Income Tax Department gives populist offers to taxpayers in March. People have time till March 31 to save income tax. People have time only this month to invest in an income tax saving scheme. In the budget last month, the Finance Minister made annual income up to Rs 12 lakh tax-free under the new tax regime, but its benefits will be available from next year. These FDs are ending on 31st March.

The government and private banks of the country start special FD schemes at the end of the financial year to attract customers and meet their targets. In special FDs, slightly higher interest is given than normal FDs. That means investors get more profit. SBI's Amrit Varishti Scheme and Amrit Kalash, Indian Bank's IND Supreme 300 days and IND Super 400 days, and IDBI Bank's Utsav Callable FD. In these FDs, banks are giving more interest than normal FDs. The last date for investment in these is 31st March.

Income up to 12 lakhs has become tax-free

Union Finance Minister Nirmala Sitharaman has provided relief to the middle-class people in this year's annual budget by making income up to 12 lakhs tax-free. If taxpayers want exemption in income tax returns under the old tax regime, then people can invest money for this. Now you have to file income tax as per last year's rules for the financial year 2024-25.

Tax relief will be available in these schemes.

To get relief in income tax, the Income Tax Department has created some special schemes (Income Tax Special Scheme). By investing in these schemes (Investment in Income Tax Scheme), taxpayers can get an exemption in income tax. By investing in different schemes under Income Tax Section 80C, 80CCC, 80D, 80DDB, 80E, 80EEA, 80EEB, 80G, and 80GG, you can claim an exemption under the old system of income tax. To get income tax exemption for the financial year 2024-25, you have to start investing before March 31.

Section 80C gives the most exemptions.

Section 80C of the Income Tax Act is used to get income tax exemption. There are many schemes under this section in which you can invest and get tax exemption up to Rs 1.50 lakh every year. 80C includes LIC, NSC, PPF, NPS, Sukanya Samriddhi Yojana etc. At the same time, tax exemption is also available on health insurance under 80D. None of these exemptions will be available in the new tax system.

The exemption is also available in Section 80TTA

Under Section 80TTA c of the Income Tax Act, people can claim income tax exemption on interest up to Rs 10,000 received in their savings bank account, or post office. People can also claim income tax exemption on interest on education loans under 80E. Tax exemption can be claimed on interest included in home loan EMI under Section 24B.

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