Tax Saving Tips: It is the responsibility of every taxpayer to pay tax on time, but the Income Tax Department gives many options to save tax. If you are also looking for tax saving option then this news is important for you. Today we will tell you the option through which you can easily save tax under 80C of the Income Tax Act.
New Delhi. Every taxpayer has to pay tax on time. In such a situation, many taxpayers look for tax saving options. Income tax departments provide the benefit of tax exemption to the taxpayers. If you are also looking for an option to save tax, then this news is useful for you.
Well, today we will tell you which options you can select to save tax.
FD
In FD with tenure of 5 years, you can avail tax benefit of Rs 1.5 lakh under 80C of the Income Tax Act. Let us tell you that 7 to 8 percent interest is offered in FD. The interest received on FD is taxable, however, you can avail tax deduction on it.
PPF
Investors of Public Provident Fund (PPF) also get tax exemption. For this the lock in period should be over. Let us tell you that the lock-in period is 15 years. There is no tax on the interest received in PPF.
Equity Linked Savings Scheme
In Equity Linked Savings Scheme (ELSS), you can make tax redemption of up to Rs 1 lakh in 1 year. However, Capital Gains Tax is levied on it. Capital gains tax of 10 percent is applicable.
National Savings Certificate
National Savings Certificate (NSC) gives interest of 6.8 percent. There is no risk in this scheme. In this scheme you can make tax deduction of Rs 1.5 lakh in 1 financial year.
Life insurance
Tax exemption is also available in life insurance policies. In this you can take tax deduction up to Rs 1.5 lakh.
National Pension System
National Pension System (NPS) is a volunteer scheme. In this scheme also, you can get tax exemption of up to Rs 50,000 under 80CCD (1B) of the Income Tax Act.
Employees Provident Fund
Tax can also be saved through Employees Provident Fund (EPF). In this, you can avail tax benefit of up to Rs 1.5 lakh under 80C.
Senior Citizen Savings Scheme
Investors get the benefit of tax exemption in Senior Citizen Savings Scheme. This benefit is available to investors above 60 years of age.
Sukanya Samriddhi Yojana
Sukanya Samriddhi Yojana (SSY) has been launched for the bright future of daughters. This is a tax free scheme, that is, there is no tax on its interest.
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