March is the month of all finance-related hassles. The deadlines to perform major financial tasks are always set by the Government as March 31 of every year. Furthermore, for the taxpayers it brings a lot of headaches as with the ending financial year they always have to worry about filing ITR or Income Tax Return, in which they disclose all about their income, assets, expenses and tax liabilities to the Income Tax Department. Their focus, with March, end, shifts towards efficient tax saving, to decrease as much tax liability as possible. So, here we will discuss a few best tax-saving options for the taxpayer of every category.
ITR Filing and Tax Saving
Under Section 80C of the Income Tax, all taxpayers practise tax saving, as they get exemptions up to ₹1.5 lacks. Furthermore, in addition to Section 80C, there are a few more tax saving and high-interest offering options that come with more risk.
Here’s the List of a Few Tax Saving Options That Comes With Varying Risk Levels:
Bank Tax Saving FD Plans
For investors who can’t afford to bear even the slightest risk, several banks offer tax-saving FD plans. So, investors can apply for a fixed deposit plan to save tax having a lock-in period of 5 years. A tax rebate under such plans is offered up to ₹1.5 lacks annually on the original deposits. Furthermore, the interest rate offered by FDs ranges between 6.5 to 7.5 per cent among both private and public sector banks.
Public Provident Fund (PPF)
“PPF is a scheme run by the government that provides a risk-free tax-saving option. You can invest an amount ranging from Rs 500 to Rs 1.5 lakh every year. The benefit of exemption of up to Rs 1.5 lakh on the amount invested in PPF is available under Section 80C of Income Tax. The government is offering an interest rate of 7.1 per cent to the investors under this scheme. You can invest money in PPF for a total of 15 years.”
Also read:
Major Income Tax Return Mistakes to Avoid
Sukanya Samriddhi Yojana or SSY for Girls
SSY is a small savings scheme backed by the Government itself under the ‘Beti Bachao, Beti Padhao’ campaign for parents or guardians of a girl child. “SSY is a government scheme under which the girl child is given the option of investing up to Rs 1.5 lakh annually to become self-reliant. Under this scheme, a 7.6 per cent interest rate is available. Along with this, it is a great tax saving scheme in which you get risk-free exemption of up to Rs 1.5 lakh under Section 80C of Income Tax.”
