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No more excuses! 7 Tax-Saving Options that Save Tax

There are numerous Tax Saving options that can be really beneficial for the people. Some of them are –

SUKANYA SAMRIDDHI SCHEME

This particular scheme is for the girl child and is a great technique to save tax.  The girls below 10 are eligible for these. Sukanya Samriddhi Scheme is a superior option than all the bank deposits. The account is matured when the girl is 21years of age.

SENIOR CITIZENS’ SCHEME

It is the finest tax-saving for the people who retire. At the rate 9.3%, it provides the maximum interest rate amid all the schemes of Post Office. The term is 5 years, that can be extendable for 3 years. Interest is paid after three months on fixed dates. The only drawback is Rs 15 lakh investment limit.

BANK FDS AND NSCs

Though FDs and NSCs issued by the banks  provide assured returns, the interest that come from such investments are fully taxable. They are best for the taxpayers in the 10% range or for the older citizens who have pooped Rs 15 lakh limit of Saving Scheme for senior citizens.

How-to-save-income-tax-with-insurance

ELSS Funds

ELSS funds is the best tax saving option owing to their wonderful potential, towering liquidity and clearness. The ELSS group has offered regular returns of 17.8% in previous 3 years. The lock-in period of 3 years is the shortest for every Section 80C option.

NPS

NPS became very attractive after the previous budget was declared and is a great tax-saving tool by contribution of additional tax assumption of Rs 50,000. In addition, retirement fund managers are permitted to spend in a superior basket of stocks.

INSURANCE POLICIES

time to save money concept on blackboard

time to save money concept on blackboard

Traditional life insurance policies are among the worst method to save tax. Even then,  millions of taxpayers purchase  these policies each year, allured by the three times benefits of  long term savings, life insurance cover and tax benefits

PPF AND VPF

It has been almost 4 years ever since the PPF rate was associated to the standard bond yield. However bond yields have continued to stay afloat and the PPF rate has not fallen. Nevertheless, the government has specified that it will evaluate the interest rates on all the small savings schemes, that includes PPF and NSCs.

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