The year 2021 will say goodbye in a few days. If you have thought of investing somewhere for tax savings in the new year, then know which scheme will be most beneficial for you. Your investment in these schemes will also be safe and you will get good returns.
Updated: December 26, 2021 03:42:39 pm
The new year 2022 is about to come, if you have not made any investment for tax saving yet, then invest in these places in the next three months because for tax saving, you have to invest ahead of time and then the income tax department has to invest in the investment. Documents have to be given as proof. You can avoid tax deduction by investing in various government savings schemes. Many schemes also offer tax exemption facility along with better returns and your investment is also absolutely safe. Government Small Saving Scheme includes schemes like NSC, Sukanya Samriddhi Yojana (SSY), PPF, NPS.
Tax saving schemes(Representational Image)
Public Provident Fund (PPF):
PPF scheme is considered to be the best government scheme to save income tax. You can invest up to Rs 1.5 lakh annually in PPF. The government gives a guarantee on investment in PPF, that is, the money will not sink. At present, the government is paying 7.10 percent annual interest on PPF. In this investment is exempted from income tax under section 80C.
ELSS funds have a lock-in of 3 years. If you do this under SIP, then the rule of FIFO i.e. ‘First in First Out’ should be taken care of. Every installment of SIP matures in three years i.e. the entire amount matures only after 6 years. But if you want, you can withdraw the payments which become mature.
Tax Saving FD:
Tax saving FDs have a lock-in of 5 or 10 years. At present, interest of 5 to 7% is being available in these FDs. Different banks fix their own interest. Tax saving FD rules are strict regarding lock in period. There is no option of pre-mature withdrawal in this. Even if you are unable to deposit money in it after one year, but whatever money you accumulate, you will get it only after five years or ten years. Investments made in tax-saving FDs get a deduction of Rs 1.5 lakh under section 80C, but banks deduct TDS on the interest earned on it.
National Pension Scheme (NPS):
This is a pension plus investment scheme. In this, you are not allowed to withdraw money until you are 60 years old and even after turning 60, you will be able to withdraw only 60% of the deposit amount, it is mandatory to buy a pension plan from the remaining 40% which will give you the pay-out of pension. In the case of tax, there is an exemption of up to Rs 1.5 lakh under section 80C and an additional exemption of Rs 50,000 through section 80 CCD.
Sukanya Samridhi Yojana (SSY):
This scheme is being run under the ‘Beti Bachao Beti Padhao’ campaign. The scheme enjoys the tax status of Exempt, Exempt, Exempt (EEE). This means that the investment amount, its interest and maturity amount will get tax exemption on all three. Parents can open the account of the daughter till she attains the age of 10 years. Only one account is allowed for one daughter. Accounts can be opened under the scheme for a maximum of two daughters. Maturity amount is available on the daughter’s completion of 21 years.
Interest: 7.6% p.a.
Senior Citizen Saving Scheme (SCSS):
There is a better saving scheme for senior citizens (SCSS). This savings account can be opened in a bank or post office. Income tax exemption can be taken under 80C on the amount deposited in this account. The maximum one can invest in this is Rs 1.5 lakh per annum. At present, there is a provision of interest of 7.4% per annum.
Source: Patrika : India's Leading Hindi News Portal by www.patrika.com.
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