Tax Saving Tips: The financial year 2023-24 is about to end, so if you have not done any financial planning regarding tax saving yet, then you have less time left to do these important things. .
There is only a little time left for the end of the current financial year and most of the taxpayers must have already started their financial planning. If you have not yet planned for tax saving and are thinking about how and where you can invest your hard-earned money, then this news is for you only. We are giving you information about the best existing options to save tax, so do this work without wasting any time.
Keep in mind that for tax saving, one has to invest ahead of time and then the documents related to the investment have to be given to the Income Tax Department as proof. You can claim deduction during ITR by investing in some schemes till March 31, 2024. For this you can invest in various government saving schemes. Along with tax saving, returns are also excellent in these schemes. There are many options available for this, which include NSC, Sukanya Samriddhi Yojana, PPF, NPS.
PPF: Public Provident Fund (PPF) is a long term investment option and is popular as the most popular tax saving scheme in India. Currently interest on PPF is available at the rate of 7.1 percent. You can invest in this scheme. Under Section 80C of the Income Tax Act, you can get tax exemption on investment of Rs 1.5 lakh annually in PPF. The government gives guarantee on investment in PPF, which means there is no fear of losing money. Let us tell you that the money in Public Provident Fund (PPF) remains locked in for 15 years.
NPS: National Pension System (NPS) is a government retirement savings scheme. In this also, tax exemption is available on investment under Section 80C of the Income Tax Act. You can also invest Rs 1.5 lakh annually and an additional Rs 50 thousand under Section 80CCD (1B). By investing in NPS, you can avail a total exemption of Rs 2 lakh in Income Tax. The government is also promoting NPS. You can start investing with Rs 1000 per month. Any Indian citizen whose age is between 18 to 65 years can open an account in this scheme. NPS account can be opened in any bank.
SSY Scheme: You can save tax by investing in Sukanya Samriddhi Yojana, a small savings scheme run by the government especially for daughters. You can save tax by opening an account in Sukanya Samriddhi Yojana (SSY) in the name of your daughter below 10 years of age. In this scheme, income tax exemption can be availed by depositing a maximum of Rs 1.5 lakh annually. Recently, the government has revised the interest rates and reduced the interest on Sukanya Samriddhi Yojana to 8.2 percent. That means, along with tax exemption, you also get strong returns.
SCSS: The next option for tax saving is Senior Citizen Saving Scheme (SCSS), this is also a very popular saving scheme. To invest in this scheme, you can open your account in bank or post office. Through investment made in this, you can get income tax exemption under 80C on the amount deposited in the account. You can invest a maximum of Rs 1.5 lakh annually in this. Like Sukanya Samriddhi Yojana, the government has also changed its interest rates and increased it to 8.2 percent.
ELSS: Equity Linked Savings Scheme (ELSS) is a type of equity fund and is the only mutual fund which offers tax exemption up to Rs 1.5 lakh under Section 80C of the Income Tax Act. There is no tax on returns/profits up to Rs 1 lakh annually in ELSS. ELSS have the shortest lock-in period of 3 years which is one of the best among all tax saving investment options. Apart from this, you can also save tax by buying Tax Saving FD and Unit Linked Insurance Plan (ULIP).
