Income Tax Saving Options: Taxpayers can save money through various avenues available for income tax savings if they plan it in a proper way. However, it is important that to ascertain that how much you need to invest. For this purpose, you need to consider investments and expenses such as employees’ provident fund, life insurance premium, tuition fees, home loan principal repayment as you can claim a deduction of up to Rs 1.5 lahks against these under Section 80C. If you want to save income tax with various investment options, then chose some best options here.
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Public Provident Fund
Public Provident Fund is a small saving scheme in which taxpayers can enjoy tax exemptions. Apart from PPF, other tax-saving options include NSC, SSY, and SCSS. You can take NSC, PPF, SSY, and SCSS from recognised banks or post offices. These schemes offer investors profit guarantees without any risk.
Home Loan
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If you go for home loans, the interest on home loans is also eligible for a deduction of up to Rs 50,000. Any charity can also notify funds or institutions to seek a deduction under Section 80G.
Fixed Deposits
Fixed Deposits are suitable tax-saving options for senior citizens. An individual gets a tax deduction under Section 80C for investment in FDs which have a tenure of 5 years.
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Equity Linked Savings Scheme
Taxpayers are advised to invest in Equity Linked Savings Schemes or ELSS through systematic investment plan (SIP). In this scheme, you can save income tax.
National Pensions System
The National Pensions System (NPS) is another well-liked option for tax saving. The deductions that you make in NPS contributions can be covered by Section 80CCD of the Income Tax Act.
