The time to file your tax returns is coming soon

WHERE TO INVEST IN ORDER TO SAVE TAXES?

There are several investment options available that can help you save tax. Here are some popular tax-saving investment avenues in India:

1. Public Provident Fund (PPF): T PPF is a long-term investment scheme with a lock-in period of 15 years. Contributions to PPF are eligible for tax deductions under Section 80C of the Income Tax Act, and the interest earned and the maturity amount are tax-free.
2. Employee Provident Fund (EPF): If you are a salaried individual, a portion of your salary is deducted as EPF contributions. These contributions qualify for tax deductions under Section 80C. The interest earned and the maturity amount are also tax-free.
3. National Pension System (NPS): NPS is a retirement savings scheme that offers tax benefits. Contributions to NPS are eligible for tax deductions under Section 80CCD(1) within the overall limit of Section 80C. Additionally, an exclusive tax deduction of up to Rs. 50,000 is available under Section 80CCD(1B).
4. Tax-saving Fixed Deposits (FDs): Some banks offer fixed deposits with a lock-in period of 5 years that qualify for tax deductions under Section 80C. The interest earned, however, is taxable.
5. Equity-Linked Saving Scheme (ELSS): ELSS is a type of mutual fund that invests primarily in equities. Investments in ELSS are eligible for tax deductions under Section 80C, up to a maximum limit of Rs. 1.5 lakh. ELSS has a lock-in period of 3 years.
6. National Savings Certificate (NSC): NSC is a government-backed savings instrument that offers tax benefits. The investment made in NSC qualifies for tax deductions under Section 80C. The interest earned is taxable, but it is reinvested and eligible for tax deductions under Section 80C.
7. Unit Linked Insurance Plan (ULIP): ULIP is a combination of investment and insurance. Premiums paid towards ULIPs are eligible for tax deductions under Section 80C. The returns from ULIPs are tax-free.
8. Sukanya Samriddhi Yojana (SSY): SSY is a savings scheme for the girl child. Contributions made to SSY are eligible for tax deductions under Section 80C. The interest earned and the maturity amount are tax-free.
9. Tax-saving Fixed Income Bonds: Certain government-approved bonds, like the 5-year cumulative or non-cumulative bonds, offer tax benefits under Section 80C. However, these bonds may have specific eligibility criteria and limited investment windows.
10. Health Insurance Premiums: Premiums paid towards health insurance policies for self, spouse, children, and parents are eligible for tax deductions under Section 80D.

It's important to consider your financial goals, risk tolerance, and investment horizon while selecting tax-saving investment options.