Tax Saving: About two and a half months are left for the end of the financial year 2024-25. In such a situation, taxpayers have less time left to invest to save tax. Many taxpayers are also looking for the best investment option to save tax, which can save tax and also get good returns. May the future also be secured. It is also necessary and many analysts also believe that all the important things related to tax should be done well in advance. Keeping this in view, we are telling you about a very useful scheme to reduce your tax burden and increase your savings.
1. Equity Linked Savings Scheme (ELSS)
ELSS funds are a popular option for tax-saving investments as they get exemption up to Rs 1.5 lakh under Income Tax Act 80C. With a minimum investment of just Rs 500 and a lock-in period of three years, ELSS are a great way to get tax benefits and finance growth.
2.National Pension Scheme (NPS)
NPS not only keeps your retirement safe but also helps you save on tax. This includes a deduction of up to Rs 50,000 under 80CCD (1B) and Rs 1.5 lakh under 80C.
PPF is a great option for tax savings and risk-free returns. In this, both the deduction under 80C and the interest received and maturity income are tax-free, making it a favorite for taxpayers looking to save money in the long run.
4. Unit Linked Insurance Plan (ULIP)
ULIP offers life insurance, investment returns and double the tax benefits. With a lock-in period of five years, investments in ULIPs are tax-free and premiums paid are deductible under the Income Tax Act.
5. Tax Saver Fixed Deposit
Tax saver FDs come with a lock-in period of five years and provide tax exemption up to Rs 1.5 lakh under Section 80C. Although one cannot withdraw money prematurely, it is a good low-risk option for investors.
6. Senior Citizens Savings Scheme (SCSS)
For senior citizens, SCSS is a good option with an annual interest rate of 8.2%. Through this, tax deduction up to Rs 30 lakh is included.
7. Sukanya Samriddhi Yojana
Schemes like Sukanya Samriddhi Yojana offer tax deduction of up to Rs 1.5 lakh under Section 80C, which offers tax-free returns. Under this, accounts can be opened for girls below 10 years of age.