Tax Saving Schemes: Investors typically begin to plan their taxes in March. Everybody wants to put their money into strategies that not only give them good returns but also help them save money on taxes in this day and age.
Investors can receive a discount of up to Rs 1.5 lakh under Section 80C of the Income Tax Act, making it the most popular method of tax savings. However, there are numerous other tax-saving strategies that may provide substantial returns but carry a higher level of risk.
You’ve come to the right place if you’re looking for a tax-saving, risk-free investment option. Let’s talk about some schemes that help you save money on taxes while also protecting you from risk.
The Bank Tax Saver FD is a risk-free investment strategy. Customers can get a tax saver FD with a lock-in period of five years from their bank. When you put money into it, you can get a tax break of up to Rs 1.5 lakh per year. Customers can obtain tax-saving FDs at interest rates ranging from 6.5% to 7.5% from the majority of government and private sector banks.
The Public Provident Fund (PPF) is a government program that offers risk-free tax savings. Every year, you can put in anywhere from Rs 500 to Rs 1.5 lakh. The advantage of exclusion of up to Rs 1.5 lakh on the sum put resources into PPF is accessible under Segment 80C of Income tax. Investors can take advantage of this program by receiving an interest rate of 7.1% from the government. PPF allows you to put money into it for a total of 15 years.
Another risk-free way to save money on taxes is the National Savings Certificate, which gives investors a 7% return. Under Section 80C of the Income Tax Act, investors can also get a rebate of up to Rs 1.5 lakh, just like the PPF. You can put money into NSC for five years.
Investors can invest in the Voluntary Provident Fund (VPF) in addition to the Employees’ Pension Fund (EPF). The employee has the option of investing more than 12% of his or her own money through the Voluntary Provident Fund.
However, he will not receive planning support in this. In such a scenario, the VPF investment receives the same 8.1% interest rate as the EPF. Under Section 80C of the Income Tax Act, investors eligible for VPF receive a rebate of Rs 1.5 lakh.
Investing in the Sukanya Samriddhi Yojana scheme for a girl child under the age of 10 can provide you with strong returns and a tax exemption. The government’s SSY program gives girls the opportunity to become self-sufficient by investing up to Rs 1.5 lakh annually.
The interest rate offered under this plan is 7.6%. In addition, it is a great way to save money on taxes because it gives you a risk-free exemption from Section 80C of the Income Tax for up to Rs 1.5 lakh.
Investors looking to save money on taxes can choose to invest in these schemes without taking any risks. You can save money on taxes and get good returns on your investment by investing in these schemes.
