Tax Saving Instruments: Do you also want to save tax on your hard earned money? Do this work before March 31 – for tax saving invest money in these schemes till March 31
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Health insurance
You can also save tax on your earnings by taking health insurance. You can get a deduction of up to Rs 1 lakh in premium under Section 80D by buying health insurance for yourself. Apart from health insurance, life insurance also offers the benefit of tax exemption under section 80C of the Income Tax Act. You can save some extra tax by taking health insurance for your family. If you are paying premium for a medical insurance plan, you can get tax benefit of up to Rs 1.5 lakh under Section 80C. Similarly, if you have taken a health insurance policy for your parents, you can claim a tax deduction of Rs 50,000 annually (for senior citizens) under Section 80D. If the parents are below 60 years of age, then they will be eligible for a tax rebate of Rs 25,000.
You can also save tax by donating
You can save tax not only by investing but also by donating. You can claim tax exemption under section 80G by donating your income to a charitable organization. This exemption will not be available on donations made in cash.
PPF
You can also save tax by investing in PPPF. You can create a pension plan through PPF. It is also a good investment option to meet your long term goals. The amount invested in PPF is not taxed.
NPS
National Pension Scheme is also a tax saving instrument. Tax exemption under section 80CCB of the Income Tax Act can be availed by investing in NPS. They can increase their tax exemption by an additional Rs 50,000 under this scheme. Subscribers can also switch from one fund manager to another fund manager under NPS.
Sukanya Samridhi Yojana
Sukanya Samriddhi is a better investment option for daughters. As per the Income Tax Act, investment up to Rs 1.5 lakh in SSY is tax exempt. The interest received in this scheme and the amount received on maturity are also tax free.
Senior Citizen Saving Scheme
Senior Citizen Saving Scheme is also a good tax saving instrument. Tax exemption can be taken under section 80C of the Income Tax Act. By investing here, you can get tax rebate of up to 1.5 lakhs.
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