Tax Saving Options: Looking for tax saving options

New Delhi. Every taxpayer has to pay tax on time. In such a situation, many taxpayers look for tax saving options. Income tax departments provide the benefit of tax exemption to the taxpayers. If you are also looking for an option to save tax, then this news is useful for you.

Well, today we will tell you what options you can choose to save tax.

FD

You can get tax benefit of Rs 1.5 lakh under Section 80C of the Income Tax Act in FD with a tenure of 5 years. Let us tell you that 7 to 8 percent interest is available in FD. The interest received on FD is taxable, although you can avail tax deduction on it.

ppf

Investors of Public Provident Fund (PPF) also get tax exemption. For this the lock in period should end. Let us tell you that the lock-in period is 15 years. There is no tax on the interest received in PPF.

Equity Linked Savings Scheme

In Equity Linked Savings Scheme (ELSS), you can make tax redemption of up to Rs 1 lakh in 1 year. However, capital gains tax is applicable on this. Capital gains tax of 10 percent is applicable.

National Savings Certificate

National Savings Certificate (NSC) gives interest of 6.8 percent. There is no risk in this scheme. In this scheme you can get tax deduction of Rs 1.5 lakh in 1 financial year.

Insurance

Tax exemption is also available in life insurance policies. In this you can avail tax exemption up to Rs 1.5 lakh.

national pension system

National Pension System (NPS) is a voluntary scheme. In this scheme also, you can get tax exemption of up to Rs 50,000 under 80CCD (1B) of the Income Tax Act.

Employees Provident Fund

Tax can also be saved through Employees Provident Fund (EPF). In this, you can avail tax benefit of up to Rs 1.5 lakh under 80C.

Senior Citizen Savings Scheme

Investors in Senior Citizen Savings Scheme get the benefit of tax exemption. This benefit is available to investors above 60 years of age.

Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana (SSY) has been started for the bright future of daughters. This is a tax free scheme i.e. there is no tax on its interest.