Latest income Tax Saving Schemes : The Modi government has not given any special concession to the taxpayers to save tax. Every taxpayer wants to save maximum tax, although it is not easy to do so. If you also want to save more tax, then it is very important to do financial planning. Today we will tell you about some such schemes, which will be beneficial for you.
Let us tell you that all these schemes are recognized by the Government of India and while investing in them, there is no need to worry whether you will get the money or not.
Public Provident Fund (PPF)
PPF (Public Provident Fund) is considered the best government scheme to save income tax. You can invest up to Rs 1.5 lakh annually in PPF. In this, income tax exemption is available on investment under section 80C. Investment in PPF is guaranteed by the government, which means the money will not sink. At present, the government is paying 7.10 per cent interest per annum on PPF.
National Pension Scheme (NPS)
National Pension System (NPS) is a government retirement savings scheme. Under Section 80C of the Income Tax Act, tax benefit of Rs 50,000 can be availed in addition to Rs 1.5 lakh. By investing in NPS, you can avail a total income tax exemption of Rs 2 lakh. You can start investing from Rs 1,000 a month. Any Indian citizen whose age is between 18 to 65 years can open an account in this scheme.
Life Insurance
Tax saving exemption is available on investment in Unit Linked Insurance Plan (ULIP). Tax exemption will not be available for premiums going to ULIPs above Rs 2.5 lakh. As per the current income tax laws, maturity proceeds of life insurance policies are exempt from tax under section 10(10D). The combination of insurance and investment in ULIP comes with a lock-in period of 5 years.
Tax Saving FD
You can save income tax by investing in tax saving fixed deposits. Investment in tax saving FD is locked for 5 years. Tax saving FD interest rates keep changing from time to time. Tax saving FD investment is a safe and guaranteed return option. You can avail tax exemption under 80C on fixed deposits up to Rs 1.5 lakh annually.
Equity Linked Savings Scheme (ELSS)
Equity Linked Savings Scheme (ELSS) is a type of equity fund and it is the only mutual fund that offers tax exemption of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. Returns/Gains up to Rs 1 lakh per year in ELSS are not taxable. ELSS has the shortest lock-in period of 3 years which is the best among all tax saving investment options. PLC/GT
