These five schemes will save you tax worth lakhs; You will also get strong returns; and Money will remain safe
If you want to save tax by investing, then Section 80C of Income Tax is very important for you. Under this, you can take advantage of tax exemption up to Rs 1.5 lakh by investing. The best thing is that there are many such schemes in which your money remains safe on investing, you get fixed returns as well as a tax exemption of Rs 1.5 lakh.
Business Desk, New Delhi. The last date for filing an Income Tax Return (ITR) is 31 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. 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.
Five-year bank FD
Fixed Deposit (FD) is considered to be the safest way of investment. 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 saving 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.
Public Provident Fund (PPF)
PPF is also a good way to save income tax. You can also avail tax exemption 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.
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. This means that you cannot withdraw the investment amount before three years. However, there is no income tax on the profit earned on selling the unit. Dividends are also tax-free. You can invest in it either as a lump sum or through SIP.
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. In this, a part of your premium goes for life insurance cover, while the rest is invested in a fund for returns. The entire amount of premium in ULIP is tax exempted under 80C.
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. The tax has to be paid on the interest in this. But, the interest of the initial years is considered an investment in NSC. In such a situation, you can claim tax exemption under 80C.
Also read: Investors get strong returns in this government scheme, you just have to invest this much daily to get 1 crore on maturity
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