Want to reduce the payment of Income Tax? Saving investment schemes
Posted on: 03/Jun/2016 10:04:58 AM
Most of us think and plan quite a lot of saving the payment of Income Tax. There are tax saving income tax schemes - you can invest in any and save considerable IT.
Public Provident Fund (PPF): This is a pretty long-time investment. A maximum of Rs. 1.5 Lakhs can be invested and IT can be saved. Apart from this, there is a tax exemption for the interest earned through PPF and the maturity amount as well.
Equity linked saving scheme: In this investment plan, a maximum amount of Rs. 1.5 Lakhs can be invested for IT exemption in a single financial year. Depending on the performance, there will be IT exemption for the interest earned and the maturity amount.
Fixed Deposits: Fixed deposit is another popular tax saving investment scheme. The interest ratio of fixed deposits made in banks and post offices differ. For a minimum of 5-year investment of Rs. 1.5 Lakhs, income tax exemption is given. However, the interest earned and the maturity amount are taxable.
National Saving Certificate (NSC): National Savings Certificates are released by the Indian Post. This is a 5-year investment plan. It is tax exempted. However, the interest earned is taxable.
Employee welfare fund: A maximum of Rs. 1.5 Lakhs can be saved in this scheme. 12 percent of the employee�s basic pay and another 12 percent from the employer go to this investment. The amount on maturity is non-taxable.
Life Insurance: Life Insurance is the most popular Income Tax saving investment under section 80C. The Income Tax exemption is given for a maximum insurance investment of Rs. 1.5 Lakhs in a single financial year. The amount on maturity or in the event of policy holder�s death is not taxable. Life insurance is multi-beneficial in a person�s life.
ULIP (Unit Linked Insurance Policy): This is a special investment. A maximum investment of Rs. 1.5 Lakhs can be made in a single financial year for IT saving. The premium paid is given in 2 forms � insurance and the investment. The maturity amount is also non-taxable.
National Pension Scheme (NPS): This is an additional tax investment scheme. This is also a long-time investment. As the scheme is is focussed on the retirement life, strict rules and regulations are followed in cases of withdrawal before maturity. A maximum of Income Tax deduction of Rs. 50000/- is given for this investment. If the employer is paying a part of the investment, it is unlimited and tax-free.
Sukanya Samrithi Yojana: This is a saving scheme where parents or guardians invest on behalf of girl children. The parents of a girl child can start this scheme any time. The central government has given due consideration to the future welfare of a 10-year old girl child while introducing this Sukanya Samrithi Yojana or Selvamagal Semippu thittam . A maximum of Rs. 1.5 Lakhs can be invested in this scheme in a single financial year. The maturity amount is non-taxable.
