Best investment plans in india to save tax

Instruments that can help you save money on tax are of the essence in the modern day.

An increasing number of individuals are now investing in instruments that can help them enhance savings. If you are one of those people who wish to start investing for the purpose of saving on taxes, following are the ten best savings instruments for the financial year These fixed deposits are similar to most other fixed deposits.

Even the interest rate applicable to Tax Saving Fixed Deposits are the same as other fixed deposits. However, investors will not be able to withdraw their funds for a minimum of five years or before the maturity of the scheme. The interest earned on Tax Saving Fixed Deposits is tax free, ensuring that customers enjoy peace of mind and maximum benefits. Individuals who invest in Public Provident Funds can draw maximum tax savings with full safety as there is plenty of ease and flexibility in PPF accounts.

Almost all major banks provide the facility to its customers and the interest paid on PPF accounts is tax free. PPF accounts can be opened for tenures of up to 15 years. Customers will not be allowed to redeem their investment prior to the maturity of the scheme.

Loans are offered against PPF by most banks but only after five years of the tenure is completed. Partial withdrawal is also allowed after five years. The employer also makes the same contribution and the investment is eligible for tax deduction.

Tax Saving Schemes in India – With all Saving Sections

Transferring an EPF from one job to another is as easy as it gets. All you have to do is withdraw the EPF after you leave a job. The money invested in PPF will be locked until the investor retires. However, tax will be applicable to any funds withdrawn prior to completion of five years of the scheme.

Like PPF, EPF is also among the safest investment choices as the funds remain with the Indian government, thus making it safer for reluctant investors.

Despite the fact that National Pension Scheme is not considered as a popular tax saving instrument, it has the potential to ensure a secure retired life in addition to implementing tax savings. Investments in National Pension Scheme can be claimed as deductions under Section 80C of the Indian Income Tax Act. However, investors can only access the funds once they have retired from professional life.

Why ELSS is the best tax saving investment option- Business News

Individuals who wish to invest in ELSS can decide to invest any amount of money based on their convenience and preference. Although ELSS comes with a minimum lock-in period of three years, investors are urged to stick with their investment for a longer period of time.

However, if you require funds from the investment prior to the completion of three years, the dividend option is ideal as it also offers tax-free dividend. ELSS can be as risky as other diversified equity mutual funds as all the funds will be invested in the share market, but long term equities provide a better return than most other forms of investment.

NSCs or National Saving Certificates are a lot like Tax Saving Fixed Deposit with the only major difference being that the returns provided by them are comparatively lower than Bank Fixed Deposits.

However, they are regarded as safer options in comparison with fixed deposits as the fund are in the custody of the Indian government. Tax benefits can also be availed from National Saving Certificates under Section 80C of the Income Tax Act.

Unlike Employee Provident Fund, Public Provident Fund or Equity Linked Saving Schemes, the interest on National Saving Certificates is taxable. The rate of interest on NSCs for five years is 8.

Among the most common products in which investors put their money are Unit Linked Insurance Plans as they not only provide insurance cover, but also a sound form of investment. The money invested in ULIPs is put into shares and customers are at liberty to choose how much of their funds must be invested in shares. These policies are highly tax efficient and offer benefits under Section 80C of the Income Tax Act. The maturity amount is also tax free and the product is designed in a manner such that it urges investors to save money on a regular basis.

While investors in term insurance policies cannot gain any maturity amounts, saving on tax is relatively easy thanks to these schemes. Term insurance policies are significantly cheaper than most other insurance packages, making them a fairly decent investment option for tax saving purposes. The premiums paid towards your health insurance policy can be claimed for tax deduction under Section 80D of the Income Tax Act.

A maximum of Rs.

As the name suggests, Senior Citizen Saving Scheme offers benefits to the elderly. It is considered the best tax saving scheme for senior citizens as it provides regular interest in the form of interest. The Senior Citizens Saving Scheme has a tenure of five years but investors will be allowed to withdraw funds subject to certain terms and conditions. The minimum limit for this scheme is Rs. The rate of interest offered is 9. Regardless of the date on which the investor made the deposit, the interest will be credited to their linked accounts on March 31, June 30, September 30 and December This is among the safer schemes as the funds will remain with the Indian government.

In addition to the aforementioned products, you can find several other tax saving investment instruments too.

Products such as tax-free infrastructure bonds, pension plans, life insurance endowment policies, etc. Returning you to where you were Sign in with Facebook Recommended for the best experience.

Home Investment Ten Best Tax Saving Investment Options Ten Best Tax Saving Investment Options. Ten Best Tax Saving Investment Options Tax Saving Fixed Deposit These fixed deposits are similar to most other fixed deposits. Public Provident Fund Individuals who invest in Public Provident Funds can draw maximum tax savings with full safety as there is plenty of ease and flexibility in PPF accounts. National Pension Scheme Despite the fact that National Pension Scheme is not considered as a popular tax saving instrument, it has the potential to ensure a secure retired life in addition to implementing tax savings.

National Pension Scheme Individuals who wish to invest in ELSS can decide to invest any amount of money based on their convenience and preference.

National Saving Certificates NSCs or National Saving Certificates are a lot like Tax Saving Fixed Deposit with the only major difference being that the returns provided by them are comparatively lower than Bank Fixed Deposits.

Unit Linked Insurance Plans Among the most common products in which investors put their money are Unit Linked Insurance Plans as they not only provide insurance cover, but also a sound form of investment.

Term Insurance While investors in term insurance policies cannot gain any maturity amounts, saving on tax is relatively easy thanks to these schemes.

10 Best Tax Saving Investment Options in India for | jyfyyuxy.web.fc2.com

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