Investment Option: There is less time left for the end of the financial year 2023-24. Everyone has to pay tax on the income earned during a financial year, if you fall in the taxable income category. If you want to save your tax in this financial year then you can invest in these 5 tax saving options.
Investment Option: There is less time left for the end of the financial year 2023-24. Everyone has to pay tax on the income earned during a financial year, if you fall in the taxable income category. If you want to save your tax this financial year, then you can invest in these 5 tax saving options. There are many schemes for saving and investing in India. Which helps in achieving their financial targets. These tax tips help you save money, give you tax exemption and good returns.
Public Provident Fund (PPF)
PPF is a long term government scheme. Tax exemption is available on investing money in PPF and the interest received on it is also tax free. Tax exemption is available under Section 80C on contributions made to PPF account. A maximum of Rs 1.50 lakh can be invested in PPF.
National Pension System (NPS)
NPS is being run by the Government of India. Investment in NPS is exempted under Section 80C. You can invest up to Rs 2 lakh in a year in NPS account. By investing in NPS you secure your old age. Also, on retirement, you get a big fund in your hands and get pension every month.
Equity-Linked Savings Scheme (ELSS)
ELSS is a type of mutual fund, whose money is invested in equity. There is a lock-in period of three years in this, that is, you cannot withdraw money before 3 years. There is exemption under 80C on investment in ELSS. Long term capital gains tax on investments made on this is taxed at 10 percent. Whereas, on others the same tax is levied at 20 percent.
Life Insurance
Life insurance premium is exempt under Section 80C of the Income Tax Act. Also, the money received after the death of the insured is not taxable.
Home Loan Interest
Interest paid on home loan is exempted under Section 24 of the Income Tax Act. Rebate on interest is available up to Rs 2 lakh in a year. Exemption is available only up to Rs 30,000 on interest on self-occupied (loans taken against the house in which you are living) and rented property.
