Tax Saving Under 80C: There is less than two months left for the end of the current financial year. After this the new financial year i.e. 2022-23 will start. You also have less than two months left to save tax before the end of the current financial year.
New Delhi. There is less than two months left for the end of the current financial year. After this the new financial year i.e. 2022-23 will start. After this, tax and many other things will change. You also have less than two months to save tax before the end of the current financial year.
If you have not yet adopted all the ways to save maximum tax, then it is better to do this work as soon as possible. If the time is more, then the scope of exploring all the options increases. There are many options under Section 80C of the Income Tax Act, where you can save tax up to a maximum of Rs 1.50 lakh by investing. Here are 7 ways by which you can save tax…
Public Provident Fund : Public Provident Fund (PPF) is the best government investment tool to save tax. You can invest up to Rs 1.5 lakh in this every year. It currently earns 7.10 percent interest annually.
National Pension Scheme : National Pension Scheme (NPS) is a retirement savings plan run by the government. 1.5 lakh annually under 80C and additional 50 thousand rupees can be invested under section 80CCD (1B).
Sukanya Samriddhi Yojana : If your daughter’s age is less than 10 years, then you can invest in Sukanya Samriddhi Yojana (SSY) in her name. The interest rate is 7.6 per cent per annum. The benefit of tax deduction is also available.
Senior Citizen Saving Scheme : For senior citizens, you can invest in this savings scheme through banks and post offices. Interest is available at 7.4 per cent per annum. Investment in this is exempted under 80C.
Insurance products : Unit linked insurance plans (ULIPs) and traditional insurance plans get tax exemption on premiums. Keep in mind that tax exemption is not available if the amount of ULIP premium exceeds 2.5 lakhs.
Tax Saving Fixed Deposit : You can avail tax exemption through tax saving FD. But it is not a very good option as it gives less than 5 per cent return per annum. There is also a lock-in period of 5 years.
Equity Linked Savings Scheme : This is a scheme of Equity Mutual Fund. In this, investment is available up to 1.5 lakh under 80C. Returns up to Rs 1 lakh per annum are tax-free and the lock-in period is also at a minimum of 3 years.
