Efficient Financial Planning 9 Tax Saving Investments You Should Know REQUEST FOR SAMPLE REPORT Request For sample Report × Report Title Name Email Designation Phone No Comapny Name Comapny URL Country -- Please Select Your Country -- Afganistan Africa Albania Algeria Andorra Angola Anguilla Antigua and Barbuda Argentina Armenia Aruba Asia Australasia Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bonaire Bosnia Herzegovina Botswana Brazil BRICS British Virgin Islands Brunei Darussalam Bulgaria Burkina Faso Cambodia Cameroon Canada Cape Verde Cayman Islands Central African Republic Central and South America Chad Chile China Colombia Comoros Congo Costa Rica Cote d'Ivoire Croatia Cuba Curacao Cyprus Czech Republic Denmark Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Europe European Union Falkland Islands Faroe Islands Fiji Finland France French Guiana French Polynesia Gabon Gambia Georgia Germany Ghana Gibraltar Global Great Britain Greece Greenland Grenada Guadeloupe Guam Guatemala Guerney & Alderney Guinea Guinea-Bissau Guyana Haiti Honduras Hong Kong Hungary Iceland India Indonesia Iran Iraq Ireland Isle of Man Israel Italy Ivory Coast Jamaica Japan Jersey Jordan Kazakhstan Kenya Kiribati Kosovo Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libyan Arab Jamahiriya Liechtenstein Lithuania Luxembourg Macao Macau Macedonia Madagascar Malawi Malaysia Maldives Mali Malta Man (Island of) Marshall Islands Martinique Mauritania Mauritius Mayotte Mexico Micronesia Middle East Minnesota Moldova Monaco Mongolia Monserrat Montenegro Morocco Morroco Mozambique Myanmar Namibia Nepal Netherlands New Caledonia New Zealand Nicaragua Niger Nigeria Niue North America North Korea Norway Oman Pakistan Palau Palestine Panama Papua New Guinea Paraguay Peru Philippines Poland Portugal Puerto Rico Qatar Reunion Romania Russia Rwanda Saint Helena Saint Lucia Saint Martin Saint Pierre and Miquelon Saint Vincent and the Grenadines Samoa Samoa (American) San Marino Sao Tome and Principe Saudi Arabia Scandinavia Senegal Serbia Seychelles Sierra Leone Singapore Sint Maarten Slovakia Slovenia Solomon (Islands) Somalia South Africa South Korea South Sudan Spain Sri Lanka Sudan Suriname Svalbard and Jan Mayen Islands Swaziland Sweden Switzerland Syria Taiwan Tajikistan Tanzania Thailand Timor Leste Togo Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Turks and Caicos Islands Uganda Ukraine United Arab Emirates United Kingdom United States Uruguay Uzbekistan Vanuatu Vatican City Venezuela Vietnam Virgin Islands Western Sahara Yemen Zambia Zimbabwe Requirement Submit When you want to provide a financially safe and stress-free life to your loved one’s, saving is the best option. The money you save today will act as tomorrow’s financial cushion. However, the tax component takes away a significant amount of one’s savings. Hence, you must understand that you can use a bunch of methods to save taxes. However, these ways are classified into two categories. The first way is one’s family expenses, whereas the second one is tax saving investments. These tax-saving options are very efficient in cutting your total sum paid towards taxes. Image source – Shutterstock Top Tax saving investments People worry about their tax responsibilities, especially when they have begun earning recently. But, if you plan your tax saving investments beforehand, it can help you maximize your tax savings considerably. The following list of few top tax saving Investments can be handy: Life Insurance Life Insurance acts as safety net to your family. It removes the financial burden off your family’s shoulder and prepares them against unforeseen situations. Under section 80c of income, premiums paid for life insurance are eligible for tax deduction. It helps to reduce the burden of the total amount of taxes paid. The maximum limit for this is Rs. 1.5 Lakh. Section 10D also provides exceptions on the assured sum during the claim time. Public Provident Fund PPF is a central government Saving Scheme. It is among the best tax-saving investments for the employed. The contributions they make towards the PPF account gives them eligibility for tax reductions under the 80C section. Moreover, these PPF accounts provide the investors with triple exception advantage of deductions on the deposits, no property tax and tax-free returns and interests. Tax Saving Fixed Deposit Tax saving fixed deposit has similar features to a regular fixed deposit. You can put an amount with a guaranteed return of a fixed amount every year. However, these deposits have a particular lock-in period where you are not allowed to draw the money. It is one of the most beneficial tax saving investments. Under section 80c of the Income Tax law, one can get a nearing 1.5 Lakh rupee tax deduction. Employee Provident Fund Every employer must deduct some percentage of their employee’s salary mandatorily and send it to Employee Provident Fund. Here both employee and employer make contributions to the EPF account. These contributions are exempted from the Tax under the 80c section. The maximum amount for deduction of Tax is up to Rs 1.5 lakhs. National Pension Scheme The NPS system is a similar pension system like PPF and EPF. It also enjoys the EEE exception status. Moreover, the total pension withdrawal amount is also tax-free. Health Insurance Health insurance plans ensure that you and your family are financially secured. The plan helps to save the health and wealth of your family. Under section 80D, you get an exception towards the premium paid. You can also avail of a reduction of around Rs 25,000 against premiums. The deduction is extended to 50,000 in the case of senior citizens. Image Source – Shutterstock Senior Citizens Savings Scheme The scheme is mainly for senior citizens in the country who are above 60 years of age. This long-term savings scheme is an excellent opportunity for senior citizens as it can provide income regularly, which also saves Tax. Section 80 C of the Income Tax Act provides a deduction of up to Rs 1.5 lakhs. Moreover, when the nominee or legal heir gets the death benefit, the amount is tax-free. Unit Linked Insurance Plans ULIP plan provides insurance cover along with investment in a single plan. It is a good option among various types of tax-saving investments. The plan provides you with an opportunity of investing in mutual funds, bonds or stocks. Section 80c in the Income Tax act provides an exception towards the premiums paid for ULIPs. You can also avail of a tax deduction on maturity under section 10D, making it one of the best tax saving options. Equity-Linked Savings Scheme An equity-linked savings scheme is a type of mutual fund, wherein you can invest a minimum of 80% of the total amount in the equity and its related instruments. The plan comes with a lock-in period for three years during which you are not allowed to withdraw the amount. They provide various tax saving options for you. Section 80c of the income tax act provides tax exemptions for the plan. Each of us wants to save money to fulfil their dreams. These tax-saving investments can help to save amounts and reduce taxes but they come with different features and horizons. Make sure you elect plans that fit your needs after understanding their long-term and short-term impact on your personal financial planning. Tags: Employee Provident Fund, Equity-Linked Savings Scheme, Health Insurance, National Pension Scheme, Tax Saving Fixed Deposit, Top Tax saving investments, Unit Linked Insurance Plans
