You must have filed tax return for FY23-24 and the return may have already come. Now you should prepare to save income tax for the new financial year. Here know about such schemes in which by investing you will earn better profits and also save income tax.
Tax Saving FD
If you invest money in 5-year FD, then tax exemption of up to Rs 1.5 lakh can be availed under Section 80C of the Income Tax Act. This does not happen in FDs of less than 5 years. You will get 5-year FD at both banks and post offices. 7.5% interest is being given on 5-year FD in the post office. At the same time, the interest rates of FDs with 5-year tenure in banks are different.
ELSS
Equity Linked Savings Scheme is called tax saving mutual funds. Investment in the income tax saving scheme is locked-in for 3 years. After this, the investor can withdraw this money if he wants. A maximum tax exemption of Rs 1.5 lakh can be taken in this. Its return is market based.
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NSC
If you invest in the National Savings Certificate Scheme, which is famous as NSC, then you have to do it for at least 5 years. In this scheme, interest is being given at the rate of 7.7%. In this too, income tax benefits are given under 80C.
PPF
Investment in Public Provident Fund has been kept in E-E-E category. Meaning your investment, interest and maturity amount are all completely tax free. This scheme matures in 15 years. If you want, you can also get it extended to take advantage of it. 7.1 percent interest is being given on this scheme.
NPS
The National Pension System is also a government scheme which is market linked. In this, you are given a retirement fund at the age of 60, along with 40 percent of your total income is used to buy an annuity, which gives you pension. This scheme is also very good in terms of saving tax. By investing in NPS, you can claim a total tax deduction of up to Rs 2 lakh – Rs 1.5 lakh under Section 80C and an additional Rs 50,000 under Section 80CCD (1B).
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