There are many options to save tax; If you pay income tax by adopting the old tax system, then you can make tax saving investments in many schemes till 31st March.
New Delhi. The last date for making Tax Saving Investment in the current financial year (FY23) is March 31, 2023. You do not have much time left to invest to save tax. If you have not yet invested anywhere to save tax, then you should do this immediately. By adopting the old tax regime, taxpayers can reduce their tax liability by taking advantage of the exemptions available under sections 80C, 80D, 80TTB, 80E, 80G.
Tax consultants say that taxpayers should do tax planning well in time. This gives him more time to invest in tax saving schemes. If you have not yet invested anywhere to save tax, then today we are telling you 5 such tax saving schemes in which you can still invest. By investing in these, not only will you get tax exemption, but you will also get good returns.
Tax exemption under section 80C is available on investment made in Public Provident Fund Public Provident Fund (PPF). A rebate of up to Rs 1.5 lakh can be availed in this scheme. If you want, you can invest in it together in one year. PPF is getting 7.1 percent return.
National Pension System
National Pension System (NPS) gets the benefit of separate tax deduction under section 80CCD (1B) on annual investment of up to Rs 50 thousand. This benefit is in addition to the benefit under 80C on investment up to Rs 1.5 lakh. If you wish, you can take advantage of this additional tax exemption by investing in it till March 31.
Tax saving FD
Tax exemption under section 80C is also available on investments up to Rs 1.5 lakh in tax saving fixed deposits (FDs) with a lock-in period of 5 years. Before investing, get complete information from the bank whether the FD in which you are investing is capable of tax saving or not. After increasing the repo rate by the Reserve Bank, banks have also increased the interest rates on FDs.
Equity Linked Saving Scheme
Equity Linked Saving Scheme is also a good option to save tax in the last minute. In this, the return is more than the bank FD. One special thing about tax saving ELSS is that it has a lock-in period of only 3 years. One can invest in ELSS through SIP and lump sum.
Health insurance policy
Health insurance policy means tax exemption is available under section 80D on buying health insurance. People below 60 years of age get the benefit of deduction on premium up to Rs 25,000, but people above 60 years of age get exemption on premium up to Rs 50,000. Under this section, you can avail tax exemption by taking health insurance for yourself and your senior citizen parents.