Best Tax Saving Options & Plans

ELSS (Equity Linked Saving Scheme) is some sort of equity-linked mutual account. The ELSS likes tax advantage under section 80C of the tax act. ELSS money have a lock-in period of 3 years, the lowest amongst the options available. The return from ELSS funds is also tax free. You are able to invest up to Rs 150,000 in ELSS funds either as a lump sum or through SIP. PPF (Public Provident Fund) is a good option if you are looking for an option with certain returns.

Currently, PPF investments earn interest at the rate of 8.7%. The PPF matures in 15 years which is extendable by 5 years at the right time. You can even partially withdraw from the PPF balance from the sixth year of deposit. You can spend money on PPF through a Post or bank or investment company Office. EPF (Employee Provident Fund) is a retirement saving instrument. DA. The eye on EPF is set by the government every 12 months. NSC (National SavingsCertificate) is a little saving scheme by the government of India.

The Scheme is specially designed for Government employees, Businessmen and other salaried classes who are Income Tax assesse. The NSC gives tax benefit under section 80C. You can spend money on NSC via your neighborhood post office. Sukanya Samriddhi Account is a government-backed saving scheme directed at the parents of young lady children. The aim of the plan is to market the welfare of lady child.

A natural/ legal guardian with respect to a girl child can open up the accounts. The minimum amount of deposit is Rs 1000 per annum. You are able to avail tax advantage under section 80C for an investment of Rs 1.5 lakh. This system motivates parents of the female child to build a finance because of their higher marriage and education expenses.

NPS (National Pension Scheme) is a voluntary defined contribution pension system in India. NPS is a low cost, tax efficient and versatile pension scheme started by Government of India for the unorganised sector and working specialists to truly have a pension after retirement. You must contribute the very least amount of Rs.1000 per year.

You can choose from different NPS programs as per their risk profile. You are able to avail income tax advantage under section 80C for an investment of Rs 1.5 lakh in your NPS accounts. You are allowed yet another deduction of Rs also.50,000 from your gross taxable income for buying NPS under Section 80CCD(1B). This deduction has ended and above the maximum tax deduction of Rs.

  • Investment guarantor loan
  • What’s the track information of dividends? Have revenue increased on the years
  • Cash outlays,
  • Withdrawals created before 59.5 years old are subject to an additional 10% penalty

Bank fixed debris (Bank or investment company FDs) or tax saver fixed deposits will be the safest option for investment. These FDs have a lock-in period of 5 years. Investment in these FDs qualifies for deduction under section 80C of the Indian Income Tax Act, 1961. You can state a deduction of the maximum amount of Rs.1.5 lakh by buying these bank set deposits.

The profits on these FDs are guaranteed and you will get a set return after the maturity. However, the interest gained is taxable. Presently, different banking institutions offer different interest on these FDs. Buying life insurance policy is a good way of saving tax. Life insurance coverage is the most typical and effective tax planning instrument in India. The policyholder is eligible for taxes benefits under section 80C for the premium paid.

Other then your tax saving, life insurance also ensures that your family will get financial support if you are no longer around to care for them. There are various life insurance plans like term programs, Endowment plans, ULIPs, and money back plans. Health insurance is known as Mediclaim. It covers the price of an insured individual’s medical and surgical expenses. Health insurance is an important investment and therefore you can enjoy tax benefits under Section 80D of the TAX Act. In the event that you liked this informative article, share it with your friends and co-workers through public media. Your opinion matters, please share your comments.