Tax Saving Options: If you want to save on income tax, consider these schemes that can help you keep more of your earning. In this article, we have listed each of the best tax saving investment options in India to help you compare and make a well-informed investment decision.
Tax Saving Tips:
(1). National Pension Scheme (NPS): This scheme is excellent for tax savings. Investing in NPS gives you an additional exemption of Rs 50,000 under Section 80C of Income Tax and 80CCD(1B). It’s a retirement plan that provides both pension benefits and tax savings.
(2). Sukanya Samriddhi Yojana (SSY): This is a good tax-saving scheme. The government offers an 8.20 percent interest rate on SSY deposits from January to March. You can invest Rs 250 to Rs 1.50 lakh in SSY per financial year, and you get a rebate of Rs 1.50 lakh under Section 80C.
(3). National Saving Scheme (NSS): NSS is another excellent tax-saving scheme, offering a 7.70 percent interest rate. You can invest any amount from Rs 1000 in multiples of Rs 100. Like other schemes, a rebate of Rs 1.50 lakh is available under Section 80C.
(4). Tax Saving Fixed Deposit (FD): This investment option provides tax exemption. Investing in bank or post office FD for 5 years qualifies for tax exemption. With an interest rate of 7.70 percent, you also get an annual exemption of Rs 1.50 lakh under Section 80C.
(5). Equity Linked Savings Schemes (ELSS): ELSS mutual funds offer better returns and a rebate of Rs 1.50 lakh per financial year under Section 80C.
(6). Public Provident Fund (PPF): By investing Rs 500 to Rs 1.50 lakh annually in a PPF account, you can get an exemption of up to Rs 1.50 lakh under Section 80C. The government is currently offering an interest rate of 7.10 percent.
(7). Senior Citizen Savings Scheme (SCSS): Senior citizens can invest in SCSS for tax savings. This scheme allows investments ranging from Rs 1000 to Rs 30 lakh, with the government providing an interest rate of 8.20 percent.
