Which saving scheme is tax free?
Which saving scheme is tax free?
Public Provident Funds (PPF):PPF is a government-backed long-term tax-free savings scheme. The money deposited with your PPF account will get tax deduction under Section 80C of the Income Tax Act. The interest earned from such savings is also tax-exempt.
How can I save tax on FY 2021 22?
8 Ways to Save Income Tax Under Section 80C
- Life Insurance. Life Insurance does not only provide full life coverage, but it is also the best way to save Taxes.
- ULIP’s.
- Mutual Funds.
- Tax Saving Fixed Deposit.
- SCSS or Senior Citizens Savings Scheme.
- Provident Fund.
- National Saving Certificates.
Which govt scheme is best for investment?
7 Government Investment Schemes For The Low-Risk Investor
- Fixed deposits.
- Public Provident Fund (PPF)
- Government securities (G-Secs)
- Sovereign Gold Bonds (SGBs)
- National Savings Certificate (NSC)
- National Pension Scheme (NPS)
- Post office monthly income scheme (POMIS)
What is best tax saving scheme?
Best Tax-Saving Investments Under Section 80C
| Investment | Returns | Lock-in Period |
|---|---|---|
| Public Provident Fund (PPF) | 7%-8% | 15 years |
| Sukanya Samriddhi Yojana | 8.5% | N/A |
| National Savings Certificate | 7%-8% | 5 years |
| Senior Citizen Saving Scheme | 8.7% | 5 years |
What is maximum tax saving?
The most popular tax-saving options available to individuals and HUFs in India are under Section 80C of the Income Tax Act, Section 80C includes various investments and expenses you can claim deductions on – up to the limit of Rs. 1.5 lakh in a financial year.
What are the tax benefits of saving schemes?
Tax Savings: Many saving schemes offer one or the other kind of tax benefits—may it be tax deductions, exemption, or both. Some schemes qualify for a tax deduction on investment of up to Rs.1.5 lakh under Section 80C of the Income Tax Act.
What are the top 5 government saving schemes?
1 Comparison Top 5 Government Saving Schemes 2 National Pension Scheme (NPS) 3 Sukanya Samriddhi Yojana (SSY) 4 Public Provident Fund (PPF) 5 National Savings Certificate (NSC) 6 Senior Citizens Saving Scheme (SCSS) 7 Advantages of investing in Government Saving Schemes 8 Frequently Asked Questions
Which is the best tax saving scheme under Section 80C?
Best Tax-Saving Investments Under Section 80C Investment Returns Lock-in Period ELSS Fund 15%-18% 3 years National Pension Scheme (NPS) 12%-14% Till Retirement Unit Linked Insurance Plan (ULIP) Returns vary from plan to plan 5 years Public Provident Fund (PPF) 7%-8% 15 years
What are the tax saving sections of the Income Tax Act?
Tax Saving Sections: Section 80C allows for exemptions up to Rs.1.5 lakhs per annum through investments in a list of schemes and instruments as described in the section rules. Apart from 80C, there are various other sections of the Income Tax Act that provide exemptions to taxpayers.
