You must have filed tax return for FY23-24 and the return may have arrived. Now you should prepare to save income tax for the new financial year. Here know about such schemes in which by investing you will earn better profits and also save income tax.
Tax Saving FD
If you invest money in 5-year FD, then tax exemption of up to Rs 1.5 lakh can be availed under Section 80C of the Income Tax Act. This does not happen in FDs of less than 5 years. You will get 5-year FDs in both banks and post offices. 7.5% interest is being given on 5-year FDs in post offices. At the same time, the interest rates of 5-year tenure FDs in banks are different.
ELSS
Equity Linked Savings Scheme is called Tax Saving Mutual Funds. Investment in income tax saving scheme is locked-in for 3 years. After this, the investor can withdraw this money if he wants. A maximum tax exemption of Rs 1.5 lakh can be taken in this. Its return is market based.
NSC
National Savings Certificate Scheme, popularly known as NSC, if you invest in it, you will have to invest for at least 5 years. In this scheme, interest is being given at the rate of 7.7%. In this too, income tax benefits are given under 80C.
PPF
Public Provident Fund investment is placed in E-E-E category. This means that your investment, interest and maturity amount are all completely tax free. This scheme matures in 15 years. If you want, you can also extend it to take advantage of it. This scheme is giving 7.1 percent interest.
NPS
National Pension System is also a government scheme which is market linked. In this, you are given a retirement fund at the age of 60, along with this, an annuity is bought with 40 percent of your total income, which gives you pension. This scheme is also very good in terms of saving tax. By investing in NPS, you can claim a total tax deduction of up to Rs 2 lakh – Rs 1.5 lakh under section 80C and an additional Rs 50,000 under section 80CCD (1B).
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