Even in today’s time, there are a large number of people who want to invest the money in a place where the returns are guaranteed. Such people like to take less risk.
Such people tend towards schemes like Bank FD, Public Provident Fund, Sukanya Samriddhi Yojana. But all these schemes come under the tax net even after getting exemption under 80C. Let us know which schemes do not get the discount available at three different levels.
What is EEE Status
EEE stands for exempt, exempt, exempt. When you invest, you get exemption under 80C. The second exemption means paying no tax on the returns earned during the course of your savings. The third and final exemption means that even when the money is withdrawn, the amount is fully tax free. EEE status is generally available on long term investment.
How is Bank FD (Fixed Deposit) taxed?
Bank FDs are fully taxed. TDS is levied at the rate of 10 per cent on interest earned from bank FDs. If you want guaranteed returns, then this is a good investment option for you.
PPF (Public Provident Fund)
Under Section 80C of the Income Tax Act, you can claim tax exemption on investments up to Rs 1.5 lakh. The maturity of PPF account is 15 years, but it can be extended for another 5 years.
Sukanya Samriddhi Yojana Investment
Like PPF, Sukanya Samriddhi Yojana is also tax free. This is also EEE i.e. tax exemption is available at three different levels. The investment made in this scheme is eligible for exemption under 80C. Sukanya Samriddhi Yojana is a better option in today’s time.
