Winning Bizness Desk

Mumbai. There is now less than two weeks left for the financial year 2021-22 to end. In such a situation, if you have not invested anywhere to save tax till now, then settle this work as soon as possible. If the time is more, then the scope of exploring all the options increases. Winning Bizness telling you the ways by which you can save tax on Rs 1.50 lakh under Section 80C of Income Tax.

1. Public Provident Fund

At present, 7.1% interest is available on the amount deposited in Post Office Public Provident Fund (PPF) accounts. PPF comes under EEE category of exemption. This means that income from returns, maturity amount and interest is exempted from income tax. This account is opened for 15 years, which can be extended for a further period of 5 years. Account can be opened in PPF with a minimum of Rs 500. Under this scheme, you can invest a maximum of 1.5 lakh rupees in the account in a year. Click here for more information related to this scheme

2. Sukanya Samriddhi Yojana

Under this, the account can be opened before the age of 10 years after the birth of a girl child. You can open this account in just Rs.250. In this, interest is being given at the rate of 7.6% per annum, which is much higher than fixed deposits. In the current financial year, a maximum amount of Rs 1.5 lakh can be deposited under Sukanya Samriddhi Yojana. This account can be opened at any post office or authorized branch of the bank. Click here for more information related to this scheme

3. Senior Citizen Savings Scheme

Interest is getting 7.4% per annum in this scheme. Account can be opened after 60 years of age or more. At the same time, a person taking VRS who is more than 55 but less than 60 years can also open this account. Money can be invested under this scheme for 5 years. After maturity, this scheme can be extended for 3 years. Under this scheme, you can invest up to a maximum of Rs 15 lakh. Click here for more information related to this scheme

4. National Savings Certificates

Post Office National Savings Certificates (NSC) investments are getting 6.8% per annum interest. To open an NSC account, you have to invest a minimum of 1000 rupees. You can invest any amount in NSC. There is no maximum investment limit in this. Click here for more information related to this scheme

5. Insurance Products

Unit linked insurance plan (ULIP) is a combination of life insurance policy and market linked investment product. Under this, a part of the premium is invested in equity or debt funds. This gives your family financial security even when you live or not. Tax exemption is available on premiums for ULIPs and traditional insurance plans. But keep in mind that tax exemption is not available if the amount of ULIP premium exceeds 2.5 lakhs. Click here for more information related to this scheme

6. National Pension Scheme

National Pension Scheme (NPS) is a retirement savings plan run by the government. 1.5 lakh can be invested annually under section 80C and an additional 50 thousand rupees can be invested under section 80CCD (1B). You can open a National Pension Scheme account in any government and private bank. Central government, state government, private sector employees and common citizens can also invest in this scheme. Click here for more information related to this scheme

7. Tax Savings Fixed Deposit

Where is the 5 year FD known as Tax Saving FD? Through this, the benefit of tax exemption can be taken. But it is not a very good option as it will give less than 5% return annually and also has a lock-in period of 5 years. Click here for more information

8. Equity Linked Savings Scheme

Equity Linked Savings Scheme ie ELSS is a scheme of Equity Mutual Fund. Returns up to 1 lakh per annum are tax-free and the lock-in period is also a minimum of 3 years. Its lock-in period is very less as compared to other schemes. Click here for more information

What is section 80C?

Many people start investing before the end of the financial year to save tax. Under section 80C, you can claim a deduction of Rs 1.5 lakh from your total income. Understand it in simple language like this, you can deduct up to Rs 1.50 lakh from your total taxable income through section 80C.