Summary:
Last day of the current fiscal is knocking the door and tax saving investments for Income tax returns filing has been the top priority of taxpayers.
For those who are panicking about the same, needn’t worry for you are at the right place.
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Last day of the current fiscal is knocking the door and tax saving investments for Income tax returns filing has been the top priority of taxpayers.
For those who are panicking about the same, needn’t worry for you are at the right place.
Here`s a list of four such tax saving investments schemes offered by the government, which can help you save big on tax.
Take a look!
Life Insurance
Investment in life insurance has been a practice since ages.
Though life insurance is not a pure form of tax saving investment, yet it comes under the list, because under section 80C of IT Act, the premium you pay under this plan is deductible from your total income – which means your taxable fraction can be lowered.
The upper limit for this deduction is up to Rs 1 lakh.
Also, premiums paid for the unit linked life insurance plans (ULIPs) are exempted from taxes under section 80C - under which Rs 1.5 lakh can be tax saving medium.
Life Insurance is not limited to investment in ULIPs, there are other life insurance plans like endowment plans, term plans and money back plans.
National Pension Scheme:
This scheme is offered by the Central government.
Although it mandatorily covers government employees, it is also open to all Indian citizens on a voluntary basis.
Up to Rs 1.5 lakh investment made in NPS, can be tax exempted under section 80C. On the other hand, deductions under this section should not exceed 10% of your salary.
Additionally, the scheme involves low-cost investment as much as Rs 500 can be invested.