Many government schemes are run by the central government, many of which offer tax exemption. Here information is given about three such schemes. In this you can save tax worth lakhs of rupees.
Many government schemes are run by the Central Government. These schemes not only provide profits but also provide tax saving benefits to the middle class. If you are a taxpayer and want to save tax with returns then these schemes are for you. By investing in these schemes you can save tax worth lakhs of rupees.
We are talking about Small Saving Schemes, which you can open through Post Office. Under small savings schemes, there are investments ranging from short term to long term. Many schemes like Public Provident Fund (PPF), Term Deposit, Senior Citizen Saving Scheme and Sukanya Samriddhi (SSY) are included under the small savings scheme. There is also a scheme like EPF for tax saving.
How much discount on investment in PPF
Public Provident Fund (PPF) is a scheme under small savings scheme, in which Rs 1.5 lakh can be saved under Section 80C of Income Tax. The maximum amount of investment in this is Rs 1.5 lakh annually, due to which this scheme is completely tax exempt. PPF is a long term investment scheme, in which investment can be made for at least 15 years. The interest under this scheme is 7.1 percent. You can invest at least Rs 500 in this.
Sukanya Samriddhi Yojana (SSY)
Sukanya Samriddhi Scheme was started under the ‘Beti Bachao, Beti Padhao’ scheme of the Central Government. You can start investing in this scheme in the name of girls and save tax worth lakhs of rupees every year. Under this scheme, half of the amount invested can be withdrawn when the daughter turns 18 and the entire amount can be withdrawn when she turns 21. The interest under this scheme is 8 percent.
Tax exemption under EPF scheme
Under the Employees Provident Fund or PF account, an employee has to contribute 12 percent of his salary every month. At the same time, the same contribution is made by the company or organization in your PF account. This scheme also comes under tax saving, in which exemption of up to Rs 1.5 lakh is given under Section 80C of Income Tax. The government gives 8.1 percent interest in this scheme. This scheme specifically deposits money for retirement, but if needed, you can withdraw the money as an emergency fund.
