Income tax saving is a significant formality and everyone wants to make relevant investments in a bid to save their hard earned money from deductions. Follow these simple steps and save tax instantly:
- Equity Linked Saving Schemes (ELSS) – ELSS is best investment plan that helps in saving tax and offers superior returns. ELSS are diversified equity mutual funds that invest a major chunk of your money in Equity/securities.
- National Pension System (NPS) – NPS is a highly beneficial contributory pension scheme. The NPS account is operable from anywhere in the country and offers tax benefits under Section 80C of Income Tax Act, Assessee can also get additional tax benefit of Rs. 50000, under the new sec 80ccd (1B)
- Life Insurance- By investing in the best life insurance policy, one can claim tax deduction on the premiums which would further reduce the tax outflow.
4. Corporate Fixed Deposits (FDs) – An investment option that guarantees huge savings, flexible maturity terms, steady and guaranteed returns. The company fixed deposits generally pay a higher interest rate than bank deposits.
- Unit Linked Investment Plan (ULIP) – It is a combination of investment and insurance which is eligible for tax exemption. It covers the risk but no guaranteed returns. The maturity revenues earned are tax-free.
(Views expressed in this article are a personal opinion of Ankit Agarwal, Managing Director, Alankit LTD.)