Best Tax-Saving Investments Under Section 80C
| Investment | Returns | Lock-in Period |
|---|---|---|
| ELSS Fund | 15%-18% | 3 years |
| National Pension Scheme (NPS) | 12%-14% | Till Retirement |
| Unit Linked Insurance Plan (ULIP) | Returns vary from plan to plan | 5 years |
| Public Provident Fund (PPF) | 7%-8% | 15 years |
Is there any standard deduction for FY 2020 21?
For the FY 2019-20 & FY 2020-21 the limit of the standard deduction is Rs 50,000….Standard Deduction Impact on Tax on Salary Income.
| Particulars | FY 2020-21 (Old Tax Regime) | FY 2020-21 (New Tax Regime) |
|---|---|---|
| Less: Standard Deduction | 50,000 | – |
| Taxable Salary | 3,00,000 | 3,50,000 |
How can I save tax in 2021 22?
Salaried employee? These payments, investments and incomes will give you tax benefits in 2021 (Top 10 List)
- Income from House Property.
- Payments for LIC premium, provident fund, PPF, Pension schemes.
- Payments for Central Government Pension scheme.
- Payment for health insurance premium.
How much tax saving is allowed?
Section 80C is a popular tax-saving deduction where you can save up to a maximum of Rs 1.5 lakh per financial year, using certain investments and expenses. The tax saving calculator consists of a formula box, where you enter the total taxable income, and your current investments or expenses under Section 80C.
How can I save my tax in 2020 21?
Here’s a list of popular investment options to save tax under section 80C.
- Public Provident Fund.
- National Pension Scheme.
- Premium Paid for Life Insurance policy.
- National Savings Certificate.
- Equity Linked Savings Scheme.
- Home loan’s principal amount.
- Fixed deposit for a duration of five years.
- Sukanya Samariddhi account.
What is the 80C limit for 2021 22?
₹1.5 lakh
Experts went on to add that while doing income tax planning, one needs to first exhaust its ₹1.5 lakh annual limit under Section 80C and then an additional ₹50,000 allowed under Section 80 CCD (1B) on one’s investment in National Pension System or NPS scheme.
What’s the best last minute tax saving strategy?
Max out your health savings account (HSA) contribution. A frequently overlooked last minute tax saving strategy is to contribute more to your HSA for the previous tax year. First, you must be covered by a high deductible health insurance plan to qualify.
What’s the best way to save money on taxes?
Here are 7 easy tax saving strategies that can lower your 2018 or 2019 tax bill: Make deductible contributions to a Traditional IRA. This is an option if you are working but not covered by a qualified plan at work (e.g., 401k or 403b) or if you are participating in a plan and have income below certain limits.
Which is the best tax saving scheme in India?
Under Section 80C, one can get a tax benefit of up to Rs 1.5 lakh per year. You can get your returns in two ways: either in dividends (if one is looking for regular income), or growth option (if one wants a long-term savings scheme). ELSS is an equity oriented scheme with 65% fund allocation in equities.
Do you have to pay income tax at end of financial year?
Paying Income tax at the end of financial years becomes challenging for most of the people. Most of the hassle bustle is based on the submission of various insurances and rent receipt. But if you want to save on taxes and safe yourself from unnecessary financial stress than it is important to check out all the instruments for tax-saving.
