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Delhi: New Year comes with new guarantees, resolutions, and willpower, all is completed to make the 12 months forward higher. And what higher may it’s than to consider your funds.
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Investment and tax saving plans come below the situation which says that the sooner you start, the extra you profit.
Under the 80C rule, there are a number of choices that simply not include tax financial savings but additionally promise nice returns in the long term. The most tax deduction which you can declare below Section 80C is Rs 1.5 lakh.
Here are 5 tax saving plans below 80C
Public Provident Fund (PPF)
Public Provident Fund (PPF) is a 15-year funding scheme below which an investor enjoys tax exemption on the time of deposit, accrual of curiosity, and withdrawal.
Even although PPF has a lock-in interval of 15 years, one could make an extension in a block of 5 years for tenures as much as 20, 25, and 30 years.
Sukanya Samriddhi Scheme
Under the Sukanya Samriddhi Scheme, an account could be opened within the identify of a lady baby until she attains the age of 10 years. The deposits fetch a price of seven.6 per cent. The account could be opened with a minimal quantity of Rs 250 and quantities a number of of Rs 100 could be deposited.
The deposits made to the account, and likewise the proceeds and maturity quantity, could be totally exempted from tax below part 80C of the Income Tax Act.
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Life Insurance Premium
Life Insurance Premium (LIC) not solely provides a cushion towards unexpected incidents, the premium is allowed for tax deductions below Section 80C.
Infrastructure Bond
Under Section 80C, taxpayers can avail of tax-saving advantages by investing in government-approved infrastructure bonds. Rs 20,000 is the utmost quantity of tax deduction one can declare for an evaluation 12 months.
National Saving Certificate (NSC)
The National Savings Certificate is one other good funding possibility for folks to speculate with a low-risk assure and get a tax rebate. The investing possibility provides 6.8 per cent rate of interest compounded yearly however is paid at maturity. The saving certificates additionally qualifies for tax rebate below Section 80C.
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