While juggling your finances to make ends meet, consider the many advantages of tax investments. Aside from tackling fiscal concerns by freeing up extra revenue, they allow you to invest your money in secure investment schemes.
The higher you rise through the ranks with spikes in your earnings, the more taxable income you likely possess. Unfortunately, this is a bittersweet truth for those who heavily rely on their income to finance everyday living. While paying taxes is our responsibility as Indian citizens, the government recognises the financial hardships of its people.
By creating various provisions for its taxpayers, the government has prevented financial impediments that could potentially affect livelihoods. With different investment schemes adhering to the Income Tax Act of 1961, you can easily avail of benefits like tax exemptions and savings.
Explore a range of government-backed secure and long-term investment schemes for maximum savings and tax benefits.
This timeless favourite of low-risk appetite investors is like any other fixed deposit. However, a Tax Saver FD provides you with the benefits of tax deductions up to ₹ 1.5 lakhs under Section 80C of the Income Tax Act, 1961
The Public Provident Fund was introduced in 1968 to encourage the habit of saving and investing among Indian citizens. You can receive considerable returns along with income tax benefits by investing in a PPF.
● Only in the case of minors, individuals can hold more than one PPF account. NRIs or HUFs with an existing PPF account will receive the matured returns without further extensions
Ensure a regular income for your retirement years, by contributing to an NPS during your active working years. To support your endeavour, the government provides you tax exemptions of ₹ 1.5 lakhs on the contribution paid towards the fund.
● Through 80CCD (1) of Section80C, salaried individuals and the self-employed can claim deductions of 10% and up to 20% on gross income, respectively
● Salaried individuals can claim deductions on employers’ NPS contribution or 10% of basic salary and Dearness Allowance (DA)
● Section 80CCD(1B) allows individuals to claim an additional amount of ₹ 50,000 on any other self-contributions toward NPS
An ELSS is an open-ended Equity Mutual Fund that primarily invests in equities and equity-related products. Under Section 80C, they qualify for tax rebates of up to ₹ 1.5 lakhs, with a yearly saving of ₹ 46,800 in taxes.
These schemes provide Indian senior citizens with retirement benefits by allowing them to invest a lump sum in the scheme. Unlike Tax Saver FDs, it offers you comparatively higher returns. Furthermore, you can claim deductions of up to ₹ 1.5 lakhs under Section80C.
Consider applying for any of the above tax investments and receive sizeable rebates or tax exemptions for boosted cash flow. For best results, align these tax investments with your financial goals!