Section 80c WHAT EXACTLY ARE 10 METHODS TO Save Income Tax?
People have the opportunity to save tax by investing up to Rs 1.5 lakh in a variety of schemes under a section 80C of the Income Tax Act, in a financial year. Most people only save taxes by buying LIC, PPF etc. but there are many other options where trading can be taxed under Sections 80C. In this article we will learn about a few of these such investment options.
In the EPF, the Rupee is transferred which is 12% of every employee’s Basic Salary deducted every month. Income tax exemption can be stated in the EPF amount up to 1 1.5 lakhs. For the financial calendar year 2017-18, an interest of 8% on the deposit amount will be given in the EPF. Who are hawala business and exactly how does it work? NSCs are used to save taxes in the same financial yr.
To save fees under Section 80C, the NSC can be spent up to 1 1.5 lakhs. NSCs can be purchased from authorized post offices but their maturity period is 5 years. Interest is available but this interest is taxable yearly. Year 2016-17 is 8 The existing interest rate for the financial.1% on NSC. ULIP is a mixture of insurance and investment.
A part of the amount committed to ULIP is utilized to provide insurance and the total amount is committed to the currency markets. ULIPs meet the criteria to save tax under Section 80C of up to Rs 1.5 lakhs. ULIP will not give guaranteed profits because they are collateral market-linked products. The disadvantage of ULIP is that they do not explicitly tell where in fact the investment has been done and how much the rupee has been deducted for the fee and other expenses. The Sukanya Samrudhi Yojana can be opened at any time from the birth of a woman till the age of 10 years. It could be deposited from minimum 1000 rupees to a maximum of Rs 1.5 lakh every season.
- 4 years back from Mumbai
- Assists with completing all the due diligence associated with the sale
- The Top Down Approach To Investing
- No professional management or monitoring
- Benefits offered style, or,
Income taxes upto 1.5 lakhs is deducted through this system under Section 80C. Interest 8.6% for the financial season 2016-17 has been set on the Sukanya Samriddhi Yojana. The total interest gained on the end of this plan does not seem to be taxable. It runs 21 years from the date of opening or up to 18 years of age. Senior Citizen Savings Scheme (SCSS) is something of Government of India. This is one of the safest investment options. People over 60 years of age can open up these accounts.
Under this course of action, investment can not be withdrawn for 5 years. Depositors can increase this deposit as well as for 3 years. The depositors get 8% – 9% curiosity about this system. Interest received from the investment is not exempt from tax. Infrastructure bonds are favored by the infra-bonds. It really is released by infrastructure companies, it generally does not release the Federal government.
You are eligible for the exemption under Principal Repayment Section 80C of Home Loan. Thus, it can save you income tax with the above 10 ways given above. It’s important to keep in mind that the government is giving exemption to get money in each one of these mediums in order to encourage the cost savings and investment in people.
