Income Tax Saving Plans: The taxpayers can claim a deduction of taxes under sections 80, 80CC & 80CCD up to Rs 1.5 lakh. Check details here.
Income Tax Saving Plan: At the end of the financial year, every taxpayer pays income taxes. The rate of income tax to be paid by the individuals vary from person to person depending upon their incomes and profits earned from other sources. In a similar manner, the tax rates are different for individuals, senior citizens, and corporates. As the salaried individuals pay their taxes and file ITR on scheduled periods, the government also provides benefits in the form of tax deductions on certain investment mechanisms that can be claimed to save on your taxes. Moreover, you can claim a deduction of taxes under section 80, 80CC & 80CCD up to Rs 1.5 lakhs under the following heads:
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Public Provident Fund (PPF): This is a wonderful tax saving scheme that can be availed at most banks and post offices in India for a tenure of 15 years at 7.10 per cent rate of interest, which is tax-free, and the interest rate changes every quarter.
Employee’s Provident Fund (EPF): Through EPF also, you can save taxes. The contribution of 12 per cent of the salary made towards EPF scheme is counted towards the limit of Rs.1.5 lakh under Section 80C.
Fixed deposit: The taxpayers also can save tax by investing in tax saver Fixed Deposits which can fetch you tax deduction under section 80C of the Indian Income Tax Act, 1961. The taxpayers can also claim a deduction of a maximum of Rs.1.5 lakh by investing in tax saver fixed deposits.
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Unit linked insurance plan: In this way also, you can save taxes. The ULIPs are long term investment products that allow the taxpayers you to choose equity funds, debt funds or both. Moreover, the ULIPs also give you the flexibility to switch between funds in sync with your financial goals. By investing in ULIPs, you can save taxes under sections 80C and 10(10D) of the Income Tax Act, 1961.
