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There are many options under section 80C through which an individual can save their income tax. Save more by studying several available tax saving options.
  1. Public Provident Fund (PPF):

PPF is debt-based savings instrument similar to EPF with certain changes as it doesn’t depend on your employment. Only one PPF account can be opened per individual. It is one the most stable and safe way of investment where an interest of 8% to 8.7% is assembled yearly, and the crediting period is 15 years.

  1. Life insurance premiums/ ULIPs:

Section 80 C deduction also includes the amount one has paid against the Life insurance premium of himself, spouse or his/her children. Any amount that is paid against life insurance qualifies under tax exemption under section 80C. Tax redemption is valid only during withdrawal (under 10(10D)) that also when the annual premium is less than 10% of sum assured.

  1. National pension scheme

one can invest a small amount 500 to 6000 in this scheme and the return of this particular scheme varies from 4% to 10%. But it only matures only at the age of 60 i.e. your retirement age and on withdrawal 40% should be invest in buying annuity which is taxable then out of remaining 60 to 40% can be withdrawn which comes under tax redemption and the remaining 20% will grab tax attention as per your income tax slab.

  1. Equity Linked Savings Scheme

It is a category of equity mutual funds that offer tax savings but investing in these types of schemes have a lock period of minimum 3 years.

  1. EPF/VPF

Under this scheme the employer and employee contribute 12% of the employee basic salary.

  1. Sukanya Samridhi Scheme

In a country like India thinking about financial stability of a girl child is a matter of concern for every parents so on 22nd January 2015 a scheme launched by pm Narendra Modi for every girl below age 10 and whatever amount deposited in the concerned girl account has tax redemption of that certain amount which has been deposited, coming to the interest of this scheme account is 0.5% above PPF interest rate.

Post Author: Tachotax

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