If you need to save earnings tax, there are a number of tax savers obtainable available in the market. Some of them corresponding to NPS, ELSS mutual funds, Ulips are market linked investments however as returns should not fastened in them, many buyers discover it as one of many many causes to shun them.
For these in search of fastened curiosity bearing tax saving investments, with out inventory market volatility, Public Provident Fund (PPF), Post Office Time Deposit Account (POTD), National Savings Certificates (NSC), Bank 5-year tax saver and Senior Citizens Savings Scheme (SCSC) are a few of the fashionable ones to select from.
You can make investments as much as Rs 1.5 lakh a 12 months in them to save lots of tax underneath Section 80C.
Public Provident Fund
PPF is a 15-year scheme, which will be prolonged indefinitely in a block of 5 years. It will be opened in a delegated put up workplace or a financial institution department. It may also be opened on-line with few banks. PPF fits these buyers who don’t want volatility in returns akin to fairness asset class. However, for long-term targets and particularly when the inflation-adjusted goal quantity is excessive, it’s higher to take fairness publicity, ideally via fairness mutual funds, together with ELSS tax saving funds and never solely depend upon PPF.
Post Office Time Deposit Account (POTD)
Post Office Time Deposits can be found for tenures of 1, 2, 3 and 5 years however it is just the 5-year deposit that enjoys Section 80 C tax profit.
National Savings Certificates
National Savings Certificates (NSC) is a 5-year scheme with a lump sum quantity to deposit. NSC doesn’t provide month-to-month or yearly curiosity payout and solely has the cumulative choice. Further, the curiosity accruing yearly, however deemed to be reinvested, additionally qualifies for profit underneath Section 80C besides within the final 12 months.
5-year notified tax saving fastened deposits
For somebody who has not exhausted the Section 80C restrict of Rs 1.5 lakh in a 12 months and is in search of a debt tax saver, funding in 5-year notified tax-saving fastened deposits in banks are a preferred alternative. Such deposits include month-to-month, quarterly or cumulative curiosity payout choices on the funding made in them.
Senior Citizens’ Saving Scheme
Senior Citizens’ Saving Scheme (SCSS) might be the primary alternative of most retirees. SCSS has a five-year tenure, which will be additional prolonged by three years as soon as the scheme matures. The most funding restrict of SCSS is Rs 15 lakh and one could open multiple account. The scheme is out there solely to senior residents or early retirees and will be availed from a put up workplace or a financial institution by these above age 60. Early retirees can spend money on SCSS, supplied they accomplish that inside one month of receiving their retirement funds.
Source: www.financialexpress.com”