If you want to save money on taxes, we’ll talk about some plans that can help you keep more of your income by reducing income tax.
National Pension Scheme (NPS)
Investing in the National Pension Scheme is a good way to save on taxes.
When you put money into this plan, you can get an extra deduction of Rs 50,000 under Section 80C of Income Tax and 80CCD(1B).
It’s like a savings plan for your retirement, and it also gives you a pension and helps you save on taxes.
Sukanya Samriddhi Yojana (SSY)
Sukanya Samriddhi Yojana is a nice way to save on taxes. The government gives an 8.20 percent interest rate on the money you put in this plan from January to March.
You can invest from Rs 250 to Rs 1.50 lakh in Sukanya Samriddhi Yojana in a year.
And you get a discount of Rs 1.50 lakh on the money you invest under Section 80C of Income Tax.
National Saving Scheme
The National Saving Scheme is a good way to save on taxes. It gives you a benefit of a 7.70 percent interest rate on the money you put in.
You can invest any amount from Rs 1000 and more in multiples of Rs 100. In this scheme, too, you can get a discount of Rs 1.50 lakh under Section 80C.
Tax Saving Fixed Deposit (FD)
Investing in a Tax Saving Fixed Deposit is a good way to avoid taxes. In this plan, you can avoid paying taxes by putting your money in a bank or post office FD for 5 years.
You get a 7.70 percent interest rate in this plan, and you also get a yearly exemption of Rs 1.50 lakh under Section 80C.
Equity Linked Savings Schemes (ELSS)
Investing in something called Equity Linked Savings Schemes (ELSS) of mutual funds is another good way to save on taxes.
In this plan, you not only get more money back but also a discount of Rs 1.50 lakh in a year under Section 80C of Income Tax.
Public Provident Fund (PPF)
By putting in Rs 500 to Rs 1.50 lakh each year in a PPF (Public Provident Fund) account, you can avoid paying taxes on up to Rs 1.50 lakh under Section 80C of Income Tax.
Right now, the government is giving an interest rate of 7.10 percent on this account.
Senior Citizen Savings Scheme
Older people can put their money in something called the Senior Citizen Savings Scheme to save on taxes.
In this plan, they can invest any amount between Rs 1000 and Rs 30 lakh. Right now, the government is offering an interest rate of 8.20 percent on this plan.
