News

Income Tax Planner 2023: New tool by Clear to help you optimize taxes, save money

Date: January 04, 2023
# News

Clear (formerly ClearTax), has launched a tax planner tool for individual taxpayers where users can input some basic information and get a report personalized to their profile. Clear said in a statement that a large number of taxpayers put off tax planning until the last minute, which is usually until the employer begins seeking proof for tax-saving investments. Leaving this decision to the last minute leads to taxpayers’ making choices that don’t align with their financial goals or are not optimal. 

“This tool is the best possible way for people to get curated tax-saving recommendations, all of them in one place. By automating tax planning through this tool, taxpayers can win at optimising their taxes and also save money,” Srivatsan Chari, co-founder, Clear said.

How to use Clear Tax Planner Tool

For using this tool, taxpayers are required to provide basic information regarding their income, deductions, exemptions, etc. The tool then delivers various recommendations on saving taxes considering several sections of the Income Tax Act. 

The suggestions provided by the Tax Planner include tax-saving investments, salary exemptions, medical insurance, loans, tax harvesting, advance taxes, etc. 

As per the data with Clear, only 40% of taxpayers fully exhaust the Rs 1.5 lakh tax deduction available under Section 80C (taxpayers with total income exceeding Rs 8 lakh). 

Details provided by Tax Planner

The Tax Planner tool will also give users detailed information on ELSS, PPF, NPS, medical insurance, salary exemptions (LTA & HRA), purchasing an electric vehicle, home and education loans, and other tips on CTC optimisation, donations, and budgeting principles. These recommendations will be based on a user’s age, city, salary break-up, rental income, etc. Users will also receive Advance Tax payment information and tax harvesting recommendations.

The Tax Planner offers over 10 customised recommendations to help you save taxes in an efficient manner. The recommendations include investment tips that’ll help generate inflation-defying wealth. It also provides Tax-Vantage Score to understand how efficiently you are saving taxes as compared to your peers. This tool further offers an intelligent simulator that dynamically shows the implications of your investment adjustments on tax savings.