Save Tax | How to Save Taxes

                                                         Best Tax Saving Options

How to Save Taxes-Tax Saving investments are important as they offer a tax deduction

About Tax Saving

Tax saving season starts in April. Smart investors should look for tax free income. One should start investing in the early quarters of the financial year to plan sensibly.

While selecting the right tax-saving investment plans one should look for safety, returns, and liquidity.

Tax saving investment plan work under the parameters of sec 80C of Income Tax Act.

Best Tax Saving Options for Salaried Class

    The best tax saving options are

1.      PPF 
2.     EPF
3.     ELSS
4.   Tax Saving FDs
5.      NPS

 

PPF

Public Provident Fund is popular among many. PPF enjoys the benefits of the triple tax exemption. Means tax exemption at the time of investment, accrual, and withdrawal.

 

EPF

Employees Provident Fund contributors enjoy tax benefits under sec 80 C while growth is tax-exempt and even the maturity amount on retirement or on withdrawal after a continuous service of 5 years is tax-free. EPF enjoys E-E-E tax status.

 

ELSS

 

Equity Linked Savings Scheme is a type of diversified equity scheme which is close ended, with a lock-in period of 3 years, offered by mutual funds in India. They offer tax benefits under sec 80C of Income Tax Act 1961.

FD

Tax saving fixed deposit (FD) account is the type of fixed deposit that offers a tax deduction under sec 80C of the Income Tax Act.

NPS

National Pension System is one of the best investment options for tax benefits up to Rs.1.5 lakh to 2 lakh under sec 80C

Disclaimer: Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

In this blog we learnt about "How to save taxes"