Section 80c Deduction: Tax Saving Investment Options Under ...

  Tax saving options under section 80C deductions. Below is the list of tax-saving options or investment plans which are eligible for deduction under section 80C: Life Insurance Premium. Amount paid by a taxpayer towards life insurance premium for spouse, children, and self is allowed as deduction. Investment schemes available in the market provide tax exemptions and tax deductions. Learn how you can reduce your tax burden by investing in the tax saving schemes at the right time. Choose from various tax saving mutual funds to claim tax exemptions and/or tax deduction under section 80c or section . Some of these effective solutions are available under Section 80 C. The Section 80C has now replaced the previously existing Section 88 and has been effective since April, Discussed below are some of the best investment options under Section 80C that can be used for tax saving purposes: Life Insurance Premiums. This means, a taxpayer in the highest tax bracket of 30% can save up to Rs. 46, in a financial year by investing Rs. lakh in 80C investment instruments. Tax-saving options available under Section 80C: Equity-linked savings scheme (ELSS) As the name suggests, ELSS funds are mutual funds that invest a majority of their assets in the equity. Rs. 2,69,* if she does not invest or spend anything for tax saving (after deduction under Section 80TTA) Rs. ,* if she maximizes her tax saving investments (after other deductions & deduction u/s 80TTA) * as per the applicable tax slabs & cess. She can save Rs. , in direct taxes using tax saving investments. See Calculation Details.

Best Tax Saving Investment Option Under Sec 80c Cleartaxcleartax

  A relatively lesser-known option to save tax under Section 80C is payments towards tuition fees that individual taxpayers can claim and not HUFs. This avenue covers for tax savings towards tuition fees paid on two children’s education.

If Assessee has more than two children, then he can claim tuition fees paid of only two children. One can save as much as Rs 46, tax by investing in these 80c investments. A) List of tax saving investments 80c – These are investments done in respective options where you would get tax exemption and your money would also grow.

Here are the list of 80c investments. B) Deductions under 80c – These are not investments. These are items where you spend money, but you are eligible to claim as a deduction under 80c. Popular investment options under Section 80C. Read on for a quick introduction to the popular investment options under Section 80C of the Income Tax Act.

Public Provident Fund; The Public Provident Fund is a tax-saving investment option in which you can make voluntary contributions of up to a maximum of Rs. 1,50, per year. Annual rate of. #1. ELSS (Best Tax Saving Plan) Equity Linked Saving Scheme (ELSS) gives a dual benefit. First, the tax savings and second, helps in growing wealth over time.

The funds are invested in equities and thus earn higher returns (up to 20%) when compared to 8% earning from PPF, FD and NSC. Income Tax, Investment Best tax saving investment options under Section 80C Aug Saket Narayane Do you know that you can claim a deduction of ₹1,50, under section 80C of the Indian Income Tax Act, ? Many people don’t. They are clueless about investing their hard-earned money and save tax on their salary income. Best Tax Saving Investment options under Section. Section 80C is the most popular income tax deduction for tax saving.

80C deduction limit for current FY (AY ) is Rs.1,50, For claiming the tax benefit ITR filing is mandatory. In this guide we have explained all the investment options available under 80C. Under Section 80C. Public Provident Fund: Public Provident Fund (PPF) is helping to create a goal with long term savings and is preferred as the best Tax saving investment. Deposits made in PPF are eligible to hold a tax deduction up to Rs.

1,50, under section 80C. Public Provident Fund is a good option to save on taxes. In this article, we are listing 10 ways beyond the Section 80C route by which taxpayers could save on income tax. 1) Tax saving with NPS under Section 80CCD (1B): Taxpayers can save additional tax by investing up to ₹ 50, in NPS. This is over and above the benefit, they can claim on contributions under Section 80c.

They also have the option of utilizing NPS for the ₹ lakh limit of. PPF or Public Provident Fund is a government guaranteed investment option that provides fixed returns along with tax benefits under section 80C. A PPF account can be opened through post offices and most of the major banks. PPF deposits have a lockin period of 15 years. Its interest rate is fixed but reviewed by the government every quarter. Public Provident Fund (PPF) PPF is a great tax saving option as it qualifies for deduction upto Rs Lakhs per annum under section 80C of the Income tax act.

Additionally, it has provided decent returns in the 7% – 9% range. Since PPF is backed by the government, it is one of the safest investment cum tax saving options in India. Investments of upto Lakh can be made to save taxes under Section can be ClearTax ClearTax Investment Handbook ’19 4 bought from designated post offices and come with a lock-in period of 5 Size: KB. Let’s take a look at the tax-saving options other than Section 80C to turn you into a smart tax saver.

Section 80CCD: National Pension Scheme: Beyond the contribution of Rs lakh under Section 80C, you can invest an additional Rs 50, in NPS which can be claimed as tax deduction under Section 80CCD. This gives you the option of claiming tax deduction of up to Rs 2 lakh every.

1. ELSS (Equity Linked Saving Scheme) Lock-In: 3 years. Returns: % (Based on the last 5 years) ELSS has emerged as one of the most popular avenues of investment for tax purposes under section 80C due to the impressive returns. So a tax rebate in addition to good returns seems a good deal to investors.

PPF Vs ELSS Mutual Funds - Which Is The Best Tax Saving ...

Therefore, for investment made post Ma till J, deduction under Section 80C can be claimed either in FY or FYat the option. It is a wise move to start your tax planning early and thus invest in tax saving schemes. We have compiled a list of best Tax Saving Investment options for you to choose from. Deductions on Section 80C, 80CCC & 80CCD Section 80C Deductions on Investments.

Under Section 80C, a deduction of Rs 1,50, can be claimed from your total income. In simple terms, you can reduce up to Rs 1,50, from your total taxable income through section 80C.

Under section 80C, VPF is a perfect investment option for tax savings as it provides a tax-free return. In addition, because they are assured by the government, the returns are risk-free.

Beyond the contribution of Rs lakh under Section 80C, you can invest an additional Rs 50, in NPS which can be claimed as tax deduction under Section 80CCD. This gives you the option. Start investing there and gain from tax exemptions under Section 80C. PPF accounts earn % interest per annum. There is a lock-in period of 15 years and the earnings and maturity proceeds are exempt from tax. PPF is one of the best tax-saving options and immensely popular since decades.

3. Tax-saving fixed deposits (FDs). Public Provident Fund or PPF is a long-term investment option for which you can avail income tax benefits under Section 80C of the Income Tax Act. Saving. Tax Saving Investments - Best Tax Saving Investments Under Section 80C.

Save Upto. Facility for systematic investments.

Best Tax Saving Options For 2018-19 - BasuNivesh

Option for intra-scheme fund switches. Ability to view updated portfolios, dividends paid or re-invested, realized gains, annual growth rates, and current NAVs of mutual funds.

Conclusion. If you are looking for tax reduction options under Section 80C, you can lessen your tax and earn huge profits with ELSS. There are many options available to investors under section 80c for tax saving purposes including Equity-linked saving schemes, 5 Year Fixed Deposits, Senior Citizen Saving Schemes, Public Provident Fund, Sukanya Samriddhi Yojana, National Saving Certificate and ULIP.

Each investment product has its own features along with different returns. This is especially useful for investors in the 5% tax bracket who are not able to fully exhaust the Rs lakh investment limit under Sec 80C.

The tax deduction available on the interest effectively makes it tax free for such investors. There have been some changes in the rules for non-resident Indians investing in small savings schemes Babar Zaidi. Tax Saving Mutual Funds are the equity-oriented mutual funds that qualify for tax deduction under Section 80C. These are also known as Equity Linked Savings Scheme or ELSS and are open-ended equity mutual funds.

With ELSS funds, you can save up to INR lakhs. There are various options to save tax under section 80C of the Income Tax Act. But, one of them is better than the others. Scripbox suggests tax saving investments under 80C. What are ELSS funds? They are open-ended equity mutual funds that are eligible for tax deductions under Section 80C of the Indian Income Tax Scripbox.

Tax-saving deductions under section 80C of the Income-tax Act, is commonly considered by the taxpayers during a financial year. Section 80C is. Budget gave taxpayers plenty to smile about.

For instance, the hike in deduction limit under Section 80C meant that those who saved more could reduce their tax by up to Rs 15, While a higher limit can clearly be a boon for taxpayers, it may not be of much use if you don’t know which tax-saving option suits you best.

Best Tax Saving Investment option under Sec 80C Investment in ELSS Fund or Tax Saving Mutual Fund is considered as the best tax saving option. These funds are specially designed to give you dual benefit of saving taxes and getting higher returns on investment. • Invest in ELSS and save upto Rs 45, in taxes • Lowest locking period of 3.

All about Tax Saving Investments other than 80C. Section 80C is the most well-known provision of the Income Tax Act ofunder which rebate of up to Rs. Lakh is granted on several loan products and other investment tools.

However, you should also be aware of numerous other instruments aiming to reduce your taxable income. Tax saving tips for investment and schemes under section 80 C are discussed. - Open demat account online to invest in Mutual Funds and.

Factors Affecting Investment Under Section 80C - TaxAdda

February 3, Among taxpayers, section 80C is the most used tax-saving option used to reduce their tax liability. Even though there is a long range of options ranging from PPF contributions, life insurance plans, five-year term deposits or ELSS schemes, you cannot claim more than Rs. lakh exemption through Section 80C investments.   These are equity based mutual funds and one of the best investment options to create wealth in the long run while saving tax. In case you can digest the volatility of stock market, this is the recommended option. Lock-in Period: 3 Years. The Good: Among the tax saving investments, ELSS has least lock-in period of 3 years.   #1 Save tax under Section 80C, Section 80CC, and Section 80CCD. To promote savings and to make sure that the savings of common people do not go in vain, the Government has allowed a certain number of deductions. These deductions are to channelize the savings of people into rightful resources. Tax Saver Fixed Deposits is a tax saving investment plan that comes with tax benefits under Section 80C of the Income Tax Act. As an investor, you can get a deduction of Rs. 1,50, maximally by investing in these short term investment plans that have a lock-in period of five years.   Investments in ELSSs qualify for tax deduction under Section 80C of the Income Tax Act. The maximum tax deduction allowed under Section 80C is Rs lakh. Options #2 – 5 yr Tax Saving Fixed Deposits. Tax saving fixed deposit (FD) is a type of fixed deposit, which comes under section 80C of the Indian Income Tax Act, Most tax-saving investment plans fall under Section 80C of the Income Tax Act, which makes the taxpayer eligible for exemption of up to a maximum limit of Rs 1,50, Investors may choose from options like ELSS (Equity Linked Saving Scheme), Public Provident Fund, Life Insurance, National Savings Scheme, Fixed Deposits, and Bonds. That implies that the money contributed, interest earned, and maturity amount received from this tax-saving investment are completed exempted from tax up to ₹ lakh under Section 80C. National Savings Certificate (NSC) Another popular tax-saving option is the NSC, which can be obtained from any government post office.

Best Tax Saving Investment Option Under Sec 80c Cleartaxcleartax: 5 Best Tax Saving Investment Options In 2021 | HDFC Life

Let us look at some of the prominent investment options and how beneficial they are to you: Tax-Saving Fixed Deposits: Term deposit of 5 years with tax-saving advantage is offered both by banks and post offices. And contribution to both of these – at least Rs. – are tax-deductible under Section 80C. This is over and above the deduction of Rs. lakh available under section 80C of Income Tax Act. SCSS (Senior Citizens Saving Scheme) This is a tax-saving scheme devised specially for resident senior citizens 60 yrs or over the age of 60 years. You can put in a one-time deposit of minimum Rs and maximum Rs lakhs. PPF is one of the best tax saving investments as the interest earned on deposits are not taxable. Moreover, the investments are liable for tax deductions under section 80C of Income Tax Act. Tax Saving FD Or Fixed Deposit. tax saving FD or Fixed Deposits are financial instruments that are provided by banks for a fixed period of time. The.   Investment in equity-linked savings scheme (ELSS) to the tune of Rs lakh in a financial year qualify for tax benefit under Section 80C. New Delhi: Amid the countrywide lockdown imposed due to the outbreak of COVID pandemic the government had extended the last date for saving tax for the financial year to June The most popular tax-saving options available to individuals and HUFs in India are under Section 80C of the Income Tax Act,Section 80C includes various investments and expenses you can claim deductions on – up to the limit of Rs. lakh in a financial year.   Tax-saving investments are essential since they allow you to claim deductions under Section 80C of the Income Tax Act, According to Section 80C, you can claim a tax deduction up to Rs. 1,50, on your taxable income. Although there are numerous best investment plans that offer tax exemptions, you might not know where to invest money. One can consider investment according to his/her preferences to make the best use of section 80C of Income Tax Act. Some of the scenarios are mentioned below: For the persons - who do not want to take any risk, want guaranteed returns and can wait for 15 years - They can invest in Public Provident Fund (PPF) which offers guaranteed returns.
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