5 last minute ways to save tax
1. Purchase an ELSS fund
An ELSS fund is one of the best short-term savings that you can make. While other saving options like PPF have a long lock in period, ELSS gives you returns in just 3 years, with 100% tax exemption. “Under section 80C, you can invest up to Rs 1,50,000 in tax-saving instruments and a top-performing ELSS fund is a great way to do that.
2. National Pension Scheme or NPS
For those salaried individuals who earn more than Rs 10 lakh annually, an NPS is a worthy savings scheme. In fact, you can claim additional deductions of up to Rs 50,000 under section 80CCD(1B) by investing in NPS. “Once you open an account, you have to invest a minimum of Rs 6,000 annually (there is no upper limit to this).
3. Public Provident Fund
Deposits made in a PPF are eligible for tax deductions under Section 80C. PPF is a long-term debt saving scheme which pays interest income to its investors. You can invest in PPF through a post office or any authorized banks. You can start a PPF account with an amount as low as Rs 100 but the minimum investment you need to make in a year is Rs 500 while the ceiling is Rs 1.5 lakh. Any amount invested beyond the Rs 1.5 lakh limit does not earn interest nor can it be used to claim tax deductions. The interest rate on PPF is fixed by the government every year and currently it is at 8.0% for FY2016-17. PPF has a tenure of 15 years, after which the withdrawals are tax-free. While the PPF doesn’t allow premature withdrawals, the account holder can take loans against the corpus in their PPF account.
4. Fixed Deposits
A higher rate of interest combined with tax benefits and good returns is what makes fixed deposits a popular investment option for most of us. However, you will get a tax deduction under Section 80C of the Income Tax Act, up to Rs 1.5 lakh in a financial year, only if you invest your money in a tax-saving fixed deposit. Tax-saving FDs are like regular fixed deposits, but come with a lock-in period of 5 years. This means you cannot withdraw from the tax-saver FD until maturity. If you are in a low-income group, you will find fixed deposits the easiest way to save on your taxes. While returns are not very high, senior citizens do get a higher rate of interest and tax exemptions. These deposits are also very easy to make, and in five years you can get attractive returns.
5. Health Insurance
Under section 80D, you can claim a medical benefit of up to Rs 25,000 per financial year for you, your spouse and your children. “You can also insure your parents and claim an additional deduction of Rs 30,000. Health insurance is a great way to keep your family safe in case of emergencies, while also saving up on taxes that you need to pay, more
An ELSS fund is one of the best short-term savings that you can make. While other saving options like PPF have a long lock in period, ELSS gives you returns in just 3 years, with 100% tax exemption. “Under section 80C, you can invest up to Rs 1,50,000 in tax-saving instruments and a top-performing ELSS fund is a great way to do that.
2. National Pension Scheme or NPS
For those salaried individuals who earn more than Rs 10 lakh annually, an NPS is a worthy savings scheme. In fact, you can claim additional deductions of up to Rs 50,000 under section 80CCD(1B) by investing in NPS. “Once you open an account, you have to invest a minimum of Rs 6,000 annually (there is no upper limit to this).
3. Public Provident Fund
Deposits made in a PPF are eligible for tax deductions under Section 80C. PPF is a long-term debt saving scheme which pays interest income to its investors. You can invest in PPF through a post office or any authorized banks. You can start a PPF account with an amount as low as Rs 100 but the minimum investment you need to make in a year is Rs 500 while the ceiling is Rs 1.5 lakh. Any amount invested beyond the Rs 1.5 lakh limit does not earn interest nor can it be used to claim tax deductions. The interest rate on PPF is fixed by the government every year and currently it is at 8.0% for FY2016-17. PPF has a tenure of 15 years, after which the withdrawals are tax-free. While the PPF doesn’t allow premature withdrawals, the account holder can take loans against the corpus in their PPF account.
4. Fixed Deposits
A higher rate of interest combined with tax benefits and good returns is what makes fixed deposits a popular investment option for most of us. However, you will get a tax deduction under Section 80C of the Income Tax Act, up to Rs 1.5 lakh in a financial year, only if you invest your money in a tax-saving fixed deposit. Tax-saving FDs are like regular fixed deposits, but come with a lock-in period of 5 years. This means you cannot withdraw from the tax-saver FD until maturity. If you are in a low-income group, you will find fixed deposits the easiest way to save on your taxes. While returns are not very high, senior citizens do get a higher rate of interest and tax exemptions. These deposits are also very easy to make, and in five years you can get attractive returns.
5. Health Insurance
Under section 80D, you can claim a medical benefit of up to Rs 25,000 per financial year for you, your spouse and your children. “You can also insure your parents and claim an additional deduction of Rs 30,000. Health insurance is a great way to keep your family safe in case of emergencies, while also saving up on taxes that you need to pay, more
Viewed by 442
See this http://economictimes.indiatimes.com/wealth/tax/look-beyond-section-80c-have-you-missed-out-on-any-of-these-tax-breaks/articleshow/53226279.cms more
Mar 17
save tax means block 5 to 7 times the amt you want to save. so why to save tax ! enjoy with your money today. kal kya hoga kisko pata.... On Thu, Mar 16, 2017 at 6:00 PM, Naveen Goel wrote: > more
Mar 17
There is Senior Citizen Saving scheme which gives 8.6% interest paid quarterly. This is also quite attractive for senior citizens. more
Mar 16
