Tax Saving Investments: If you also want to do tax planning in the new year, then learn about such plans that will give you good interest and also help you save income tax.
7 Tax Saving Schemes: Everyone feels bad when their hard-earned money goes to income tax. The new year has begun. In such a situation, it is very important for you to start tax planning. To make this planning easier, we are going to tell you about some such schemes here in which you can save a large part of your hard-earned money from income tax by investing. Know about 7 such schemes here-
PPF
Public Provident Fund commonly known as PPF. This is a scheme in which you get assured returns and your investment remains completely safe. PPF matures after 15 years, which means it is a long-term investment scheme. Currently, interest is being paid at the rate of 7.1 percent. Investment made in PPF is kept in the EEE category. This means that your investment, interest and maturity amount are completely tax-free. On investing in PPF, tax deduction up to Rs 1.5 lakh is available under Section 80C of the Income Tax.
ELSS
Mutual Fund’s Equity Linked Savings Schemes (ELSS) is one such option, which offers tax savings along with good returns. In this, you can save up to Rs 1.5 lakh in tax under Section 80C and also create a large fund. ELSS is the product with the shortest lock-in period. Investments in ELSS cannot be redeemed for 3 years. Also, you should invest money only after understanding the risks involved.
SSY
If you are the father of a girl child, you can invest in the Sukanya Samriddhi Yojana to secure her future. Currently, it is offering an interest rate of 8.2 percent. The advantage of this scheme is that not only will a good fund be accumulated for your daughter, but you can also save tax up to Rs 1.5 lakh annually under Section 80C. A minimum of Rs 250 and a maximum of Rs 1.5 lakh can be invested in this scheme and it can be opened for a maximum of two girls.
NPS
If you want to save tax, you can also invest in National Pension System i.e. NPS. In this, you can get tax deduction under 80C and tax deduction of Rs 50 thousand under 80CCD (1B). This is a good scheme for retirement planning. In this, you can also avail tax deduction on investment every year along with pension in old age.
SCSS
Senior Citizen Savings Scheme i.e. SCSS is a special scheme run by the government for the elderly. Under the Post Office Savings Scheme, Senior Citizen Savings Scheme, senior citizens are getting interest at the rate of 8.20 percent on the amount deposited. In this scheme, an investment of Rs 1000 to Rs 30 lakh can be made. This scheme is a very beneficial deal for senior citizens. Through this, the account holders can file ITR and claim tax deduction under Section 80C.
NSC
National Savings Certificate i.e. NSC is also a safe and guaranteed return scheme. Any Indian citizen can invest in it. Investment in NSC can be started from Rs 1000. There is no upper limit for investment. Currently, it is being given interest at the rate of 7.7 percent. This account can be opened at any post office in the country. It also gets the benefit of tax deduction under 80C.
If you make a fixed deposit i.e. FD for 5 years, then you will get the benefit of tax exemption on it. Therefore, this FD
is also called tax saving FD. You get the option of tax saving FD not only in banks but also in post offices. Interest rates change everywhere. You can invest as per your convenience by looking at the interest rate. You can also take tax exemption under 80C.
