Tax Saving Tips Everyone tries to save as much tax as possible. For this they also invest in many schemes. If you also want to save tax and get higher interest rates, then today we will tell you about some small saving schemes in which you can avail tax benefits along with returns.
Income Tax 2024: Many taxpayers are trying to save as much tax as possible. Many schemes are being run by the government for tax saving. In these schemes, the taxpayer gets the benefit of tax exemption along with high interest on investment.
Today we will tell you about some small saving schemes with the help of which you can easily save maximum tax (Tax Benefit).
Public Provident Fund (PPF)
Many investors like to invest in Public Provident Fund. In this you can start investing from Rs 500 and can invest a maximum of Rs 1.50 lakh in a year.
Although one has to invest in this scheme for 15 years, but the investor can extend this scheme for 5-5 years. If an investor invests in PPF continuously for 3 years, then he can also take a loan after 3 years.
Please note that you cannot close your PPF account before 15 years and if you do not invest in any year, the account will be frozen. Once the account is frozen, all the benefits the investor gets will also stop. At present, interest is available in PPF at the rate of 7 percent.
PPF account can be easily opened in bank or post office. In PPF, tax benefits are easily available under 80C of the Income Tax Act.
Kisan Vikas Patra (KVP)
Kisan Vikas Patra scheme of post office is quite popular. 6.9 percent interest is available in this scheme. There is no limit for investing in this scheme. The investor has to invest a minimum of Rs 1,000 and the maximum he can invest is any amount.
In this scheme, the investor can invest in both single and joint mode. Let us tell you that only people above 18 years of age can invest in it. If a parent opens an account for a minor, then all the rights derived from the account will be with the minor’s parents.
The lock-in period in this scheme is two and a half years i.e. 2.5 years. This means that till this tenure the investor cannot withdraw the amount from the scheme. In this scheme, the investor gets tax benefit under Section 80C of the Income Tax Act.
National Savings Certificate (NSC)
You can start investing in National Saving Certificate from Rs 1,000. In this the investor gets 6.8 percent interest annually. In this scheme, the interest is calculated on an annual basis and when the scheme matures, the interest amount is given all at once. Investors can invest any amount of rupees in this scheme. There is no maximum limit for investment.
Equity Linked Savings Scheme (ELSS)
Equity Linked Savings Scheme (ELSS) is a scheme of Mutual Fund. This scheme is run by mutual fund companies. In this scheme the investor gets the benefit of tax benefits. If you want to invest in this scheme, you can easily buy it online or with the help of an agent. In this you have to invest at least Rs 5,000 every month.
This is a one-time scheme. There is no limit on maximum investment in this. In this scheme the investor gets tax exemption up to Rs 1.5 lakh. The lock-in period of this scheme is 3 years. After 3 years the investor can make partial withdrawal from it. Interest is not paid in this but rather market linked returns are given.
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