Delhi: New Year comes with new promises, resolutions, and determination, all is done to make the year ahead better. And what better could it be than to think about your finances.
Investment and tax saving plans come under the condition which says that the earlier you begin, the more you benefit.
Under the 80C rule, there are multiple options that just not come with tax savings but also promise great returns in the long run. The maximum tax deduction that you can claim under Section 80C is Rs 1.5 lakh.
Here are 5 tax saving plans under 80C
Public Provident Fund (PPF)
Public Provident Fund (PPF) is a 15-year investment scheme under which an investor enjoys tax exemption at the time of deposit, accrual of interest, and withdrawal.
Even though PPF has a lock-in period of 15 years, one can make an extension in a block of 5 years for tenures up to 20, 25, and 30 years.
Sukanya Samriddhi Scheme
Under the Sukanya Samriddhi Scheme, an account can be opened in the name of a girl child till she attains the age of 10 years. The deposits fetch a rate of 7.6 per cent. The account can be opened with a minimum amount of Rs 250 and amounts multiple of Rs 100 can be deposited.
The deposits made to the account, and also the proceeds and maturity amount, would be fully exempted from tax under section 80C of the Income Tax Act.
Life Insurance Premium
Life Insurance Premium (LIC) not only gives a cushion against unforeseen incidents, the premium is allowed for tax deductions under Section 80C.
Under Section 80C, taxpayers can avail of tax-saving benefits by investing in government-approved infrastructure bonds. Rs 20,000 is the maximum amount of tax deduction one can claim for an assessment year.
National Saving Certificate (NSC)
The National Savings Certificate is another good investment option for people to invest with a low-risk guarantee and get a tax rebate. The investing option gives 6.8 per cent interest rate compounded annually but is paid at maturity. The saving certificate also qualifies for tax rebate under Section 80C.