5 Best Tax Saving and investment Schemes: According to financial experts, a good tax-saving investment is called that which is excellent in terms of investment and gets the benefit of tax exemption separately.
5 Best Tax saving scheme: According to financial experts, a good tax-saving investment is called that which is excellent in terms of investment and gets the benefit of tax exemption separately. If you are not getting good returns on your investment and it is also helping in saving tax, then you should consider new investment options. There are dozens of such schemes which provide double benefit of tax saving along with good returns. Let us know about 5 such great schemes.
ELSS (Equity-linked savings scheme)
ELSS Mutual Funds are such schemes, in which double benefit of tax benefit and strong returns is available. Investing in ELSS schemes gives the benefit of deduction of Rs 1.5 lakh under section 80C. Its lock-in period is of 3 years. When the schemes mature, the net return comes under Long Term Capital Gain (LTCG). This capital gain is taxed at the rate of 10%. Long term gain is tax free up to 1 lakh in a financial year. Tax is deducted on the amount after that.
NSC (National Savings Certificate)
National Savings Certificate is a small savings scheme. It has return guaranteed. In this, at least 1000 rupees will have to be invested in a financial year. Currently, a fixed return of 7 per cent is being received. Its duration is of 5 years. This is its lock-in period. Deduction is available under section 80C.
Public Provident Fund (PPF)
Public Provident Fund is a small saving scheme with EEE category. If the investment perspective is for a long term, then you can invest in it. It matures in 15 years. At least 500 rupees will have to be deposited in a financial year. A maximum investment of Rs 1.5 lakh can be made. Deduction is available under section 80C. Currently the interest rate is 7.1 percent. The interest is compounded on an annual compounding basis.
Sukanya Samriddhi Yojana (SSY)
Sukanya Samriddhi Yojana is a tax free small savings scheme. This scheme has been prepared keeping the girls in mind. It was launched on 22 January 2015. Her parents can invest in this scheme in the name of a girl up to 10 years of age. Investing under this scheme gives the benefit of deduction under 80C. A minimum of Rs 250 can be deposited in a financial year. The interest rate is 7.6 percent. This scheme matures in 21 years after account opening.
ULIP Plans
This is such an insurance policy in which double benefit of insurance and investment is available. It gives life protection to the policy holder and also gives returns on maturity. Tax benefit is available in several stages on ULIP plans. Tax benefit is available under section 80C on premium payment. Tax benefit is available on maturity under section 10(10D).
