Income Tax Tips: If you want to save income tax, girls will have to take this step from now on...
Tax saving options for women: Many times it happens that when it comes to income tax, we take hasty steps at the end of the financial year. But if we plan our taxes as soon as the new financial year starts and take investment-related steps in a disciplined manner, then the last financial year passes smoothly. Be it a woman or a man, a working person should start tax planning well in time. This is a simple but thoughtful step and has to be done regularly and at a fixed time.
To save on income tax, you can start taking advantage of these schemes from now-
Sukanya Samriddhi Yojana- Sukanya Samriddhi Yojana is a government-backed savings scheme specially designed for girls. The aim is to educate the girl child and encourage her parents to save for her education and marriage expenses. Sukanya Samriddhi Yojana comes under EEE (exempt, exempt, exempt) tax category. That is, you will not have to pay taxes on investments, earnings, and withdrawals. If you have a daughter then you can take advantage of this scheme. Tax exemption will be given under Section 10 (11A) of the Income Tax Act, 1961. Investments made in the SSY scheme are eligible for deduction under Section 80C, with a maximum limit of Rs 1.5 lakh. Get more information about this scheme by clicking here.
National Savings Certificate- NSC is a fixed-income investment scheme that you can avail of through the post office. You can start with a minimum deposit of Rs 1000. Till this time the scheme provides guaranteed returns to investors at the rate of 7.7%. Under Section 80C of the IT Act, you can avail deduction on any amount paid or deposited for obtaining a National Savings Certificate. The limit is up to Rs 1,50,000, after which you will have to pay interest. For more information related to women and personal finance, you can click here.
Public Provident Fund Account- Public Provident Fund i.e. PPF is for you if you want to invest for the long term. PPF account can be opened with a minimum deposit of Rs 500, with a maximum annual contribution of Rs 1,50,000. For more information related to PPF, you can click here.
Benefits on Insurance: Women can also avail of tax benefits on life insurance policies taken for themselves or their spouse or any child. However, such deduction cannot exceed 10% of the sum assured as of 1/4/2013 in the case of a normal individual and 15% of the sum assured in the case of a person suffering from certain diseases under section 80U.
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