Tax Saving Tips: Before filing ITR, know these five amazing schemes, you will save tax worth lakhs and also get strong returns..
The last date for filing an Income Tax Return (ITR) is 31st July 2024 and is very close. In such a situation, if you also want to save tax by investing, then you still have a chance (ITR Filing Deadline). We are telling you about five schemes, by investing in which you can save tax up to Rs 1.5 lakh under section 80C of Income Tax.
1) Five-year bank FD
Fixed deposit (FD) is considered to be the safest way to invest. In this, your investment amount remains safe, as well as you can get a fixed return on it. Five-year FD is also called Income Tax (Income Tax Saving Tips) saving a fixed deposit. In this, you cannot redeem the investment before five years. If it is necessary to redeem the investment, then you may have to adjust the tax exemption benefits (Tax benefits on FD).
2) Public Provident Fund (PPF)
PPF is also a good way to save income tax. You can also avail of tax deductions by investing in the PPF account of your spouse or children. However, there is no income tax exemption on investment in the account of parents or siblings. The maturity period of the PPF account is 15 years. The best thing is that tax exemption is also available on investment, interest, and withdrawal of money on maturity (Tax benefits on PPF).
3) Equity Linked Savings Scheme (ELSS)
In ELSS also, you can claim a deduction up to Rs 1.5 lakh under 80C. But, the problem with ELSS is that it has a lock-in period of three years (Section 80C Investments). This means that you cannot withdraw the invested amount before three years. However, income tax (How to Save Income Tax) is not required on the profit made on selling the unit. Dividends are also tax-free. You can invest in it in a lump sum or through SIP.
4) Unit Linked Insurance Plan (ULIP)
You get tax exemption on the entire amount of premium in ULIP under section 80C of Income Tax. It is a combination of life insurance policy and investment (ITR filing tips). In this, a part of your premium goes for life insurance cover, while the rest is invested in a fund for returns (how to reduce income tax). In ULIP, tax exemption is available on the entire amount of premium under 80C.
5) National Savings Certificate (NSC)
NSC is also very popular as a tax saving scheme. Its maturity period is five years. In this too, one gets the benefit of tax exemption of Rs 1.5 lakh under 80C (tax benefits of NSC). In this, tax has to be paid on the interest. But, the interest of the initial years is considered an investment in NSC. In such a situation, you can claim tax exemption on it under 80C (tax saving schemes).
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