People in the country keep looking for different ways to save Income Tax. People often make mistakes while trying to save taxes and have to pay a heavy fine.
But you can legally save income tax too. For this, the government has given many options.
Every taxpayer can save tax by using these legitimate methods. There is only a little time left for the new financial year.
In such a situation, you can start your financial planning now and save tax by adopting these five methods.
National Pension Scheme
Investment in the National Pension Scheme (NPS) is also tax exempted under section 80C of the Income Tax Act.
You can invest 1.5 lahks annually and 50 thousand rupees under section 80CCD (1B).
By investing in NPS, you can take advantage of a total exemption of Rs 2 lakh in Income Tax.
Sukanya Samriddhi Yojana
Investing in Sukanya Samriddhi Yojana (SSY) can get income tax exemption. This scheme of the central government is for daughters.
Presently, interest is being received at the rate of 7.6 percent on the amount invested in this scheme.
Earlier, in this scheme, tax exemption was available under 80C only on account of two daughters. But the government has changed it.
According to the new rule, tax exemption will also be given to their account if two twin daughters are born after one daughter.
Senior Citizen Saving Scheme
This is an excellent scheme for senior citizens (SCSS). Under this, savings accounts can be opened in the post office or bank.
Income tax exemption can be taken under 80C on the amount deposited in this account. You can invest a maximum of Rs 1.5 lakh annually in this.
Presently, interest is being received at the rate of 8 percent on investment in this scheme.
Public provident fund
Public Provident Fund (PPF) is currently getting interested at 7.1 percent. You can invest in this scheme.
Under Section 80C of the Income Tax Act, you can get tax exemption on investing Rs 1.5 lakh in PPF annually.
The government guarantees investment in PPF, which means money will not sink.
You can also get a discount like this
Apart from these government schemes, taxpayers can also claim tax exemption on housing rent, leave travel allowance, education loan interest for children, and home loan interest.
Apart from this, tax exemption can also be taken on health insurance premiums.
Under section 24B of income tax on a home loan, you can avail of tax exemption on the interest of 2 lakhs.
