How can I reduce my income tax in India?
Here’s a list of popular investment options to save tax under section 80C.
- Public Provident Fund.
- National Pension Scheme.
- Premium Paid for Life Insurance policy.
- National Savings Certificate.
- Equity Linked Savings Scheme.
- Home loan’s principal amount.
- Fixed deposit for a duration of five years.
- Sukanya Samariddhi account.
Which is the best option to save tax?
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 |
How can I save maximum tax on my salary in India?
Save Income Tax on Salary
- Deductions under Section 80C, Section 80CCC and Section 80CCD. Citizens of India can save tax under these 3 sections.
- Medical Expenses.
- Home Loan.
- Education Loan.
- Shares and Mutual Funds.
- Long Term Capital Gains.
- Sale of Equity Shares.
- Donations.
Can I save tax more than 1.5 lakh?
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.
Which is the best income tax saving technique in India?
The interest which is received from this income tax saving technique is a decent tax-saving option and under section 80C, up to Rs. 1.5 lakh could be taken as a rebate. PPF is one of the most sought after income tax saving techniques in India. In PPF, a long-term investment could be made with a tenure of 15 years.
Which is the best way to save income tax?
Under section 80C, various investments and expenses options are present through which you can claim a deduction to a limit of Rs. 1.5 lakh in a financial year. These options are as follows: Equity Linked Saving Scheme is the only mutual funds’ category which provides the facility of tax deduction under the Income Tax Act.
How can I save tax by taking home loan?
Most people are advised to save tax by taking a home loan because the deductions can be claimed under 3 sections, which can result in huge savings. If people take a home loan, then they are allowed under Section 80C of the Income Tax Act to claim deductions on the repayment of the principal loan amount.
What is the tax rate of SCSs in India?
The contributions made to an SCSS are eligible for a tax deduction. SCSS is having a tenure of 5 years. It is available for investments for those who are above 60 years. The rate of return offered by an SCSS is currently 8.7% per annum which is higher than a bank FD.