Income Tax Saving: There is about two and a half months left for the financial year 2024-25 to end. In such a situation, taxpayers have less time left to invest to save tax. Many taxpayers are also looking for the best investment option to save tax
Income Tax Saving: There is about two and a half months left for the financial year 2024-25 to end. In such a situation, taxpayers have less time left to invest to save tax. Many taxpayers are also looking for the best investment option to save tax, in which tax is saved and good returns are also available. Along with this, the future is also secured. This is also important and many analysts also believe that all the necessary things related to tax should be done before time. In view of this, we are telling you about a very useful scheme to reduce your tax burden and increase your savings.
1. Equity Linked Savings Scheme (ELSS)
ELSS funds are a popular choice for tax-saving investments, offering deductions of up to Rs 1.5 lakh under the Income Tax Act 80C. With a minimum investment of just Rs 500 and a lock-in period of three years, ELSS is a great way to avail tax benefits and finance growth.
2. National Pension Scheme (NPS)
NPS not only secures your retirement but also saves on taxes. It includes deductions of up to Rs 50,000 under 80CCD (1B) and Rs 1.5 lakh under 80C.
3. PPF
PPF is an excellent option for tax savings and risk-free returns. Both the deductions under 80C and the interest and maturity income are tax-free, making it a favourite among taxpayers looking to save money for the long term.
4. Unit Linked Insurance Plans (ULIPs)
ULIPs offer double the tax benefits of life insurance, investment returns and tax benefits. With a lock-in period of five years, investments in ULIPs are tax-free and premiums paid are eligible for deduction.
5. Tax Saver Fixed Deposits
Tax saver FDs come with a lock-in period of five years and offer tax exemptions of up to Rs 1.5 lakh under Section 80C. Though there is no premature withdrawal, it is a good low-risk option for investors.
6. Senior Citizen Savings Scheme (SCSS)
For senior citizens, SCSS is a good option with an annual interest rate of 8.2%. It offers tax deduction up to Rs 30 lakh.
7. Sukanya Samriddhi Yojana
Plans like Sukanya Samriddhi Yojana offer tax deduction of up to Rs 1.5 lakh under Section 80C with tax-free returns. Under this, accounts can be opened for girls below 10 years of age.
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