Income Tax Savings: If you are taxable and have not yet made the necessary investments to save tax, then do it quickly because you have only a little time left for tax saving. The current financial year will end on 31 March 2025 and the new financial year will begin from 1 April. Here know about those schemes in which by investing you can save a large part of your hard-earned money from going into income tax.
PPF Scheme
Public Provident Fund which is commonly known as PPF. This is a scheme in which you get guaranteed returns and your investment is completely safe. PPF matures after 15 years, that is, it is a long term investment scheme. Currently, it is getting interest at the rate of 7.1 percent. Investments made in PPF have been kept in E-E-E category. This means that your investment, interest and maturity amount are all completely tax free. Investing in PPF gives tax exemption of up to Rs 1.5 lakh under section 80C of Income Tax.
NPS Scheme
If you want to save tax, you can also invest in National Pension System (NPS). In this, you can get exemption under 80C and tax exemption of Rs 50,000 under 80CCD (1B). This is a better scheme as per retirement planning. In this, you can get tax exemption on every year’s investment and also get the benefit of pension in old age.
ELSS Scheme
Equity Linked Savings Schemes (ELSS) of Mutual Funds is one such option which provides tax saving along with better returns. In this too, you can save tax up to Rs 1.5 lakh under section 80C, and can also create a big fund. ELSS is the product with the lowest lock-in period. Investment in ELSS cannot be redeemed for 3 years. However, you should invest money only after understanding its risk.
SSY Scheme
If you are the father of a daughter, you can invest in Sukanya Samriddhi Yojana to secure her future. Currently, it is getting an interest of 8.2 percent. The advantage of this scheme is that a good amount of funds will be deposited for your daughter, and you can also save tax up to Rs 1.5 lakh annually under 80C. A minimum of Rs 250 and a maximum of Rs 1.5 lakh can be invested in this scheme and it can be opened for a maximum of two daughters.
SCSS Scheme
Senior Citizen Savings Scheme i.e. SCSS is a special scheme run by the government for the elderly. Under the Post Office Savings Scheme Senior Citizen Savings Scheme, senior citizens are getting interest at the rate of 8.20 percent on the deposit amount. Under this scheme, investments can be made from Rs 1000 to Rs 30 lakh. This scheme is a very beneficial deal for senior citizens. Through this, account holders can claim tax exemption under section 80C while filing ITR.
NSC Scheme
National Savings Certificate i.e. NSC is also a scheme that gives safe and guaranteed returns. Any Indian citizen can invest in it. Investment in NSC can be started from Rs 1000. There is no maximum limit of investment. Currently, interest is being given on it at the rate of 7.7 percent. This account can be opened in any post office in the country. In this also, the benefit of tax exemption under 80C is available.
FD Scheme
If you make a Fixed Deposit (FD) for 5 years, then you get the benefit of tax exemption on it. Therefore, this FD is also called tax saving FD. You get the option of tax saving FD in banks as well as post offices. The interest rate is different at all places. You can invest according to your benefit by looking at the interest rate. You can also get tax exemption under 80C.
