The current financial year is going to end and the new tax year is going to start from 1 April. In such a situation, most of the taxpayers have already been involved in their financial planning. If you have not yet planned about tax saving and are thinking about how and where to invest to save your hard -earned money, then this news is for you. We are giving you information about some of the best options in terms of saving tax, through which tax can be saved from cutting.
Investment required before 31 March
Tax saving has to be invested ahead of time and then the Income Tax Department has to give the investment proof related to investment. You can claim to make deduction claims by selecting Old Tax Regime while filling ITR by investing in some schemes till 31 March 2024. For this, you can invest in all government savings schemes. The biggest thing, you can not only save tax by investing in these schemes, but you can also take advantage of the dhhansu returns in these. The most popular options in this case include NSC, Sukanya Samriddhi Yojana (SSY), PPF, NPS.
First Option- Investment in PPF
Public Provindant Fund (PPF) is a long -term investment option and the most popular tax saving scheme is included. PPF is currently getting interest at the rate of 7.1 percent. You can invest in this scheme. Under Section 80C of the Income Tax Act, you can get a tax exemption on investment of Rs 1.5 lakh annually in PPF. The government guarantees the investment in PPF, that is, there is no fear of drowning money. Let us know that the money in the Public Provident Fund (PPF) remains lockin for 15 years.
Second option- Investment in NPS
The National Pension System (NPS) is a government retirement saving scheme. In this also, there is a tax exemption under Section 80C of the Income Tax Act. In this, you can also invest an additional 50 thousand rupees under 1.5 lakh and Section 80CCD (1B) annually. By investing in NPS, you can take advantage of a total discount of Rs 2 lakh in income tax. The government is also promoting NPS. You can start investment from 1000 rupees a month. Any Indian citizen who is between 18 and 65 years old can open an account in this scheme. NPS account can be opened in any bank.
Third option- ssy scheme
You can save tax by investing in the Small Saving Scheme Sukanya Samriddhi Yojana (Sukanya Samriddhi Yojna), especially for daughters. You can do tax saving by opening an account in Sukanya Samriddhi Yojana (SSY) in the name of your daughter under 10 years of age. In this scheme, an income tax exemption can be taken by depositing a maximum of Rs 1.5 lakh annually. The interest on Sukanya Samriddhi Yojana is 8.2 percent, that is, the future of the daughter is also safe and the saving of tax.
Fourth option- Senior Citizen Saving Scheme
The next option for tax saving is Senior Citizen Saving Scheme (SCSS), this is also a very popular savings scheme. To invest in this scheme, you can open your account in a bank or post office. Through the investment made in this, you can get an income tax exemption under 80C on the amount deposited in the account. You can invest a maximum of Rs 1.5 lakh annually. Like Sukanya Samriddhi Yojana, the government is also paying 8.2 percent interest in it.
Fifth option- ELSS Saving Scheme
Equity Linked Saving Scheme (ELSS) is a type of equity fund and is the only Mutual Fund, which gets a tax exemption of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. Returns/benefits up to Rs 1 lakh annually in ELSS are not taxed. ELSS is the shortest lock-in period of 3 years that is better of all tax-saving investment options. Apart from this, you can also save tax by purchasing Tax Saving FD and Unit Linked Insurance Plan (ULIP).
Under Section 80D of the Health Insurance Action, you can claim a cut of up to Rs 25,000 for payment of health insurance premium for themselves, including your spouse and children. At the same time, if you buy health insurance for your parents, then you can save an additional amount of Rs 50,000.