5 Tax Saving Schemes AY 2024-25,
Best investment options to grow money and save tax,
Best Tax saving schemes,
Tax saving options,
NPS,
PPF,
NSC,
SCSS,
SSY,
National Pension System,
Public Provident Fund ,
Sukanya Samriddhi Yojana,
Senior Citizen Saving Scheme,
National Saving Certificate,
(1) National Pension System (NPS) is a good option for tax saving and long term investment
In this, tax exemption of Rs 50 thousand can be availed under Section 80CCD (1B) of the Income Tax Act
In this, you not only get the benefit of tax exemption on investment every year, but pension also becomes a support for your old age in future
Upon maturity of the NPS account, one can only withdraw 60% of the amount, and this is entirely tax-free
The 40% that is used to buy an annuity is also tax-free. However, the annuity income is taxable as per the investor's income tax slab rate in the year of payout
(2) Public Provident Fund (PPF) is also a long term scheme
It matures in 15 years, which can be extended further in blocks of 5 years
In this, Rs 500 to Rs 1.5 lakh can be invested in a financial year
Interest of 7.1 percent is available on this
This investment can get you a rebate of Rs 1.5 lakh annually under Section 80C
It falls under the exempt- exempt-exempt (EEE) category . This means, the principal amount, the interest earned and the maturity amount of PPF is completely tax-free.
(3) In Sukanya Samriddhi Yojana (SSY), you can open an account till the age of your daughter is 10 years
The annual investment range ranges from a minimum of Rs 250 to Rs 1.5 lakh
In this also, exemption under Section 80C will be available on annual investment of Rs 1.5 lakh
Interest of 8.2 percent is available on this
It falls under the exempt- exempt-exempt (EEE) category . This means, the principal amount, the interest earned and the maturity amount of PPF is completely tax-free.
(4) Senior Citizen Saving Scheme
Any retired person of 60 years of age or above can invest in SCSS
You will get 8.2 percent interest annually, which is much higher than FD
You can invest Rs 1,000 to Rs 15 lakh in this
Under Section 80C, you will also get the benefit of tax exemption on investment up to Rs 1.5 lakh
However, the issue is that tax has to be paid on the interest amount (Not fall in EEE Category)
(5) National Saving Certificate (NSC)
This scheme will give you 7.7 percent interest annually
The minimum investment limit in this is Rs 1,000, but there is no limit on the maximum investment
In this also you will get exemption of up to Rs 1.50 lakh under Section 80C
However, the issue is that tax has to be paid on the interest amount (Not fall in EEE Category)
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