Top 5 Options To Save Your Tax This Year
Income Tax is important part of the deduction on our income. Everybody has to pay tax and no one can evade from it. You may save some part of it by investing in right tax saving instrument.
There may be cases that you are investing only in traditional tax saving instruments like Tax Saver FD or Life Insurance Policy; but I'm sharing some of the right instruments which will fetch you more returns that the traditional one.
Here is list of 5 Best Options to Save Tax This Year
1. Equity Linked Savings Scheme or ELSS
ELSS is one of the best tax saving investment and non traditional option to save tax. With ELSS your funds are invested in equity and related instruments.
The ELSS comes with lock in period of 3 years which is the least lock in period compared to any other tax saving instrument in India. Investment in ELSS is similar like investment in Mutual Fund. ELSS investment offers tax benefits upto 1.5 Lacs under section 80C. Also there is no tax liability on maturity amount received.
With ELSS you can get returns more than 25%.
With ELSS you can get returns more than 25%.
2. Health Insurance
With change in living habits and habitat human health is affected and hence we are seeing substantial increase in the purchase of Health Insurance now a days. Health Insurance is our next tax saving investment option.
If you've not purchased the health cover for you and your family, you should get health cover as it will be duel benefit for you viz. Health Cover + Tax Benefit.
One can get Tax benefit on health insurance – Up to Rs 25,000 and Rs. 30,000 for parents (Senior citizen) under section 80 D.
3. PPF
PPF is a preferred investment option. It also receives tax benefits under section 80C to the extent of Rs. 1.5 lacs. In fact, it is tax free at all stages – when you invest, the interest you receive and on withdrawal. And it is backed by government guarantee. Your money is totally safe unless the government itself goes bankrupt. You can open a PPF account with a PSU bank or at your neighbourhood Post Office. You can make recurring deposits into it starting as small as Rs. 100.4. Term Insurance
Term Plan is next tax saving investment option. Buying term plan means purchasing financial security for your family. If you have not purchased a term plan or if you are underinsured, it is recommended to buy an online term plan. Term plan provides wide cover in less premium so if you are thinking that you've enough LIC policies with you then also you must buy term insurance. The premium of term plan is exempted from tax under section 80C. You can purchase term plan online. We shall come up with the best Term Insurance plans to suit your requirement shortly.The amount paid on Term Insurance also comes under 1.5 Lakh (Section 80C)
5. Tax Saver FD
Last tax saving option is tax saver FD. I would not recommand this option as it is only suitable for the conservative investors who do not wish to risk their investment at all. As offered by banks it is safest way to save tax. The lock-in period for tax saver FD is 5 years. Also you'll not enjoy tax free interst with this option as Interest earned on Tax Saver FD is taxable.Below is list of Tax Saving Instrument in which you can invest for this year.
Tax Saving Options Chart
Plan your saving wisely and Save on your hard earned income !
Do share your views in the comment section.
Comments
Post a Comment