Where can I invest my money to save income tax in India?
Investment options under Sec 80C
Table of Contents
Where can I invest my money to save income tax in India?
Investment options under Sec 80C
| Investment | Returns | Lock-in Period |
|---|---|---|
| National Pension System (NPS) | 12% to 14% | Till Retirement |
| ELSS Funds | 15% to 18% | 3 years |
| Unit Linked Insurance Plan (ULIP) | Varies with Plan Chosen | 5 years |
| Sukanya Samriddhi Yojana (SSY) | 7.60% | N/A |
Which investment is best for tax saving?
Income Tax Investments Under Section 80C
| SR. NO | INVESTMENTS ELIGIBLE FOR TAX DEDUCTIONS |
|---|---|
| 1 | Home Loan Principal Repayment |
| 2 | Life Insurance Premiums |
| 3 | Five-Year Bank Fixed Deposits |
Which investment is tax free in India?
Listed below are tax free investments that meet a variety of needs and financial goals:
| Sr No. | Best Tax Free Investments | Tax Benefits |
|---|---|---|
| 1. | Life Insurance | Under Section 80C and Section 10(D) |
| 2. | PPF (Public Provident Fund) | Under Section 80C and Section 10(D) |
| 3. | NPS (New Pension Scheme) | Under Section 80CCD |
| 4. | Pension | Under Section 80CCC |
How much should I invest to save tax in India?
New retail investor who complies with the condition of gross total income less than Rs 12 lakh can enjoy deduction under RGESS. One can invest maximum Rs 50,000 for claiming deduction under RGESS. New retail investor gets 50% deduction of the amount invested from the taxable income for that financial year.
How can I save tax on 12 lakhs?
Tax Deductions under Section 80(C)
- Investments in PPF (Public Provident Fund)
- Investments in EPF (Employee Provident Fund)
- Investments in ELSS funds (Equity-Linked Savings Scheme)
- Investments in NSC (National Savings Certificates)
- Payment of premiums against Life Insurance Policies.
How can I save tax if I earn 20 lakh?
Tax Exempted Salary Components
- Meal Coupons.
- Car Maintenance.
- EPF (Contribution by Employer)
- NPS (Contribution by Employer)
- Gift voucher.
- Mobile Phone and the Internet Bill Reimbursement.
- Newspaper/Journal Allowance.
- Children Education/Hostel Allowance.
How much amount FD interest is tax free?
Banks or post offices deduct tax or TDS when the aggregate interest income on all fixed deposits exceeds Rs 40,000 per financial year. The limit is Rs 50,000 in case of senior citizens.
How can I save tax on 7 lakhs?
If you earn an annual salary up to Rs. 7.75 lakh, here’s how you can pay zero tax
- Highlights.
- People earning up to Rs. 5 lakh are now exempt from paying tax.
- Salaried individuals earning up to Rs. 7.75 lakh can also pay zero tax.
- To reduce taxable income to Rs. 5 lakh, invest fully in Sections 80C, 80D, 80CCD(1B), 80TTA.
How can I save tax if I earn 15 lakh?
1. Reduce Your Taxable Income by Up To Rs 1.5 Lakhs (Section 80C, 80CCC, 80CCD)
- Unit Linked Insurance Plans (ULIPs)
- Pension or Annuity Plans from Life Insurance Companies.
- Public Provident Fund (PPF) & Employee Provident Fund (EPF)
- New Pension Scheme Tier-I Account.
- Senior Citizen Savings Scheme.
How can I legally pay zero taxes?
If you want to avoid paying taxes, you’ll need to make your tax deductions equal to or greater than your income. For example, using the case where the IRS interactive tax assistant calculated a standard tax deduction of $24,800 if you and your spouse earned $24,000 that tax year, you will pay nothing in taxes.
How can I save tax if I earn 18 lakh?
There is no maximum deduction limit under this section. You can claim full interest paid on loan taken for the higher education of self, spouse, or children….
| Particulars | Amount (in Rs) |
|---|---|
| Gross Salary | 18,00,000 |
| Less HRA | 4,30,000 |
| Less Education Allowance | 2,400 |
| Less Hostel Allowance | 7,200 |
Which is the best tax saving investment plan in India?
Best Tax Saving Investment Plans To Invest in India. 1 1. Life Insurance Plan. Life Insurance Plan is one of the most important investment plans in India. It ensures that one’s family is financially 2 2. ELSS Funds. 3 2. Public Provident Fund (PPF) 4 3. Sukanya Samridhi Yojana. 5 4. National Savings Certificate.
How to save taxes and earn returns in India?
You can save tax and earn returns with the best tax saving schemes in India. The ideal time to plan for tax saving investments is the beginning of the financial year. This will ensure you don’t pay more taxes and save taxes in India along with year-long returns on tax saving investment.
How to save tax by investing in tax-saving funds?
We all need to invest in tax-saving financial avenues such as Public Provident Fund (PPF), National Pension System (NPS), National Savings Certificate (NSC), tax-saving fixed deposit, life and health insurance policies, among others, in a bid to save tax.
When is the best time to save taxes in India?
The ideal time to plan for tax saving investments is the beginning of the financial year. This will ensure you don’t pay more taxes and save taxes in India along with year-long returns on tax saving investment. While we all aim to save taxes in India why only a few of us succeed.
