Tax Saving Tips: Income Tax Exemption and Tax Benefits
The new financial year is going to start from the month of April. In such a situation, if you have not thought about Tax Saving Planning, then start thinking immediately. You should have a good understanding of these investment planning before March 31, 2023. We are saying this because if you want to avoid tax saving i.e. claim income tax rebate, then for this you have to invest in any tax saving scheme in time. Will have to invest.
You can claim Income Tax Exemption by showing the documents related to this investment while filing Income Tax Returns. So in time, you should start investment planning to avoid tax, because if you do not do this, then you may have to pay more tax. So let us tell you today how you can save tax by investing in the right place according to you.
Under section 80c of income tax, the schemes in which you are given tax benefits on investing are as follows:
- Public Provident Fund (PPF): This is a great scheme to save income tax. By investing in it, you can get a return of 7.1%. At the same time, under this scheme, you are given tax exemption under 80C on investment up to Rs 1.50 lakh annually.
- Employee Provident Fund (EPF): Investing in this scheme currently gives a return of up to 8.1 percent. Along with this, the benefit of income tax exemption is also given. Under Section 80C of Income Tax, it gets a rebate of up to Rs 1.5 lakh.
- Fixed Deposit Scheme (FD Scheme): Under Section 80C of Income Tax, investors are given a tax rebate of Rs 1.5 lakh on investing in FD scheme. The lock in period in this scheme is of 5 years. At the same time, the interest rates available on FD also keep changing.
- Equity Linked Savings Scheme (ELSS): This is one such mutual fund scheme in which you can invest through SIP of Rs.100. In this, you also get the benefit of tax exemption of Rs 1.5 lakh under Section 80C of Income Tax.
- National Savings Certificate (NSC): This is a very popular small savings scheme of the post office. Interest is also very good on investing in it. Along with this, tax exemption up to Rs 1.5 lakh is also available under 80C. Its maturity time is 5 years, in which you can start investing from Rs 1,000. There is no maximum limit to invest in it.
- Atal Pension Yojana: You can get more pension every month by paying very low premium. On the other hand, if the policyholder dies in this, then his family is also given financial help. You also get tax exemption under 80C on investing in this scheme.
- Sukanya Samriddhi Yojana: Under this scheme, to secure the future of daughters financially, a girl child below 10 years of age can invest by opening an account. In this scheme, the benefit of tax exemption is available with 7.6 percent interest. Rs 250 to Rs 1.5 lakh can be deposited annually in Sukanya Samriddhi account. When your daughter turns 21, you get the money with full interest.
- Unit Linked Investment Plan (ULIPS): By investing in it, you are given the benefit of tax exemption up to Rs 1.5 lakh under 80C. Along with this, you also get the benefit of insurance. But under ULIPs, if the annual premium exceeds Rs 2.5 lakh, the excess premium is taxed.
- NABARD Bonds (NABARD): Through this, you can also claim tax under 80C on the amount invested by buying NABARD bonds.
Take expert advice before making any kind of investment. If you invest in haste, then you may have to face financial loss.