Tax Saving Tips
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Whether you are a working professional or a freelancer, investments play a major role when it comes to saving your taxes. With the beginning of every financial year, people look for various investment options where they can save maximum of their money and at the same time garner good interest returns too. Now, all these tax exemptions mainly come under section 80 (C) of the Income-tax act and the total amount of deduction allowed under this is 1.5 Lacs. So, whenever you make an investment plan in the beginning of the year, you must plan accordingly.

Here’s a look at some of the investment options that fall under Section 80 (C):

Invest in Life Insurance

Life insurance is one of the integral parts of your investment. It not only saves you during tough times but also helps in tax exemptions. It is a contract between you and the life insurance company where the later guarantees to pay an assured sum of the money in case of any mishappening or at the end of the policy term. Almost 70-80% of individuals invest in Life insurance and the premium can be paid monthly, annually or quarterly too. So you can easily exempt tax on the premium paid.

Invest in National Saving Certificate

A National Saving Certificate is that investment which you can make through any post-office. It is a type of savings bond that comes with a maturity period of 5 or 10 years. However, you can save tax on the premium paid towards it.

Invest in ULIPS

ULIP or Unit Linked Insurance Plan is an investment cum tax saving plan that provides wealth creation along with life cover too. So, when you invest via ULIP, the insurer invests some part of the premium in shares/bonds, etc., and the balance amount is utilized in providing an insurance cover. So, an individual has to pay a premium in order to pay the balance amount. The premium paid comes under tax deductions.

Invest in PPFs and EPF

Public Provident Fund (PPF) and Employment Pension fund is another way to save on your taxes as well as to secure your future too. Just like above, here also you can enjoy tax benefit on the payment of premium.

Invest in Home loan

If you have purchased your dream home via a home loan, then also you can exempt taxes. The amount paid towards the principal repayment as EMI is allowed under Tax deduction.

Invest in Senior Citizens Saving Schemes (SCSS)

For senior citizens, a secure future is a must. So it’s better to invest in Senior Citizens Saving Schemes (SCSS) that allows a regular income along with tax saving benefits too. You can invest a maximum of 15 lakh on which you can earn a return of 8.6 % per annum as interest.

Invest in Fixed Deposits (FDs)

A fixed Deposit is a five-year investment scheme which provides you good returns as well as tax benefits. Just like above investment schemes, FDs are also taxable under section 80 C. The maturity period of fixed deposits varies from 91 days to 269 days.