Income Tax Saving Tips: Most of us invest in a scheme keeping in mind the profit. But if you get income tax benefits along with profit on investing, then the benefit is double. Here know about 4 such schemes which not only give you the benefit of interest, but also save your income tax in 3 ways. These schemes have been placed in the EEE category.
Know what is EEE category
EEE means Exempt Exempt Exempt. Schemes falling under this category save tax in three ways. The amount deposited every year is not taxed, apart from this, the interest earned every year is not taxed and the entire amount received at the time of maturity is also tax free, that is, there is tax saving in investment, interest/return and maturity. Know in which schemes you can avail this benefit-
Public Provident Fund
PPF is a good option for saving tax and investing in a safe place. Under this scheme, any investor can deposit a minimum of Rs 500 and a maximum of Rs 1.5 lakh in a year. PPF gives an annual interest of 7.1 percent. The special thing about this scheme is that the investment amount, the interest received on the investment amount and the maturity amount are all tax free.
Equity Linked Savings Scheme
Equity Linked Savings Scheme (ELSS) is also called tax saving mutual funds. In equity linked saving schemes, you can deposit money either in lump sum or through SIP. Its lock in is of three years. After this, you can withdraw money whenever you want or continue your investment. If you withdraw the money after 3 years, you get tax benefits.
Sukanya Samriddhi Yojana
Under this scheme, the investor gets 8.2 percent interest. Under this scheme, any father can deposit from Rs 250 to Rs 1.5 lakh annually in his daughter’s account. The money is deposited for 15 years and when the daughter turns 21, the entire amount including interest is returned to the investor. To invest in this, the daughter’s age should be less than 10 years.
Employee Provident Plan
If you are employed, you can also save your tax through EPF. EPF is also an EEE category scheme. Currently, 8.25 percent interest is given on it. In such a situation, you can save a good amount of money through this scheme. If you want, you can also increase your contribution through VPF.
