Tax Saving Option: There is less than 2 months left for the financial year 2024-25 to end. In such a situation, people who want to reduce their taxes do not have much time left to make the right investment. Many people are looking for options that will give them tax exemption and also secure their future
Tax Saving Option: There is less than 2 months left for the financial year 2024-25 to end. In such a situation, those who want to reduce their taxes do not have much time left to make the right investment. Many people are looking for options that will give them tax exemption and also secure their future. It is important to do tax planning on time so that you do not have to face any problem later. Here we are telling you about some of the best schemes, by investing in which you can save tax and also earn good returns.
1. Equity Linked Savings Scheme (ELSS)
ELSS fund is a great tax saving option, in which up to Rs 1.5 lakh exemption is available under section 80C of the Income Tax Act. You can start investing in it with a minimum of Rs 500. Its lock-in period is only three years, which is the lowest compared to other tax saving options.
2. National Pension Scheme (NPS)
NPS is a good option for retirees, which offers an additional deduction of Rs 50,000 under section 80CCD (1B) and Rs 1.5 lakh under 80C. This helps you save tax as well as have a secure future.
3. Public Provident Fund (PPF)
PPF is a safe and tax-free investment option. It offers exemption under 80C and the interest and maturity amount are also tax-free. It is great for those who want to invest for a long period.
4. Unit Linked Insurance Plan (ULIP)
In ULIP, you get the benefit of investment along with life insurance. It comes with a lock-in period of five years. It offers tax exemption on premium and maturity amount is also tax-free.
5. Tax Saver Fixed Deposit (FD)
If you want a low-risk option, then Tax Saver FD is a good option. It has a lock-in period of five years and up to Rs 1.5 lakh exemption is available under 80C. However, money cannot be withdrawn prematurely.
6. Senior Citizen Savings Scheme (SCSS)
This scheme is very beneficial for senior citizens. It gives 8.2% annual interest and tax deduction is available on investment amount up to Rs 30 lakh.
7. Sukanya Samriddhi Yojana (SSY)
This scheme is specially designed for daughters below 10 years of age. It gives tax exemption of up to Rs 1.5 lakh under 80C and its return is also tax-free.
