March 31, 2024, is the deadline to invest in tax saving schemes for the current financial year. The new fiscal year will start on April 1, 2024, and investments made after March 31 will not be counted for this year’s tax savings.
Even as crores of Indians are looking for last-minute options to save tax, the Income Tax Act of India provides them with a number of options. One of the most popular investment sections is Section 80C. Under it, taxpayers can save tax up to Rs 1.50 lakh on deposits in many of the government and private sector run investment schemes.
Let’s have a look at seven tax-saving options under 80C:
PPF
Employees who contribute to their Public Provident Fund (PPF) account can also claim deductions under Section 80C. PPF comes with a maximum deposit limit of Rs 1.50 lakh, allowing investors to get an exemption on the entire deposited amount.
EPF
A member of the Employee Provident Fund (EPF) is eligible to claim a deduction under Section 80C. The condition is that the employee should be a serving member for at least five years.
ELSS
Deposits up to Rs 1.50 lakh in Equity Linked Saving Schemes, or ELSS, are eligible for tax exemption under Section 80C. ELSS comes with a three-year lock-in period.
NPS
National Pension Scheme (NPS) is a popular retirement investment scheme. The scheme is open to public as well as private sector employees. One gets maturity amount at the age of 60. Deposits in the scheme also provides also provide tax relaxation under Section 80C. People with Tier-1 NPS account can get a further deduction of Rs 50,000 under sub section 80CCD.
Life Insurance premium
If one has bought a life insurance policy for themselves, their children, or their spouse, the premiums paid towards it are eligible for deductions under Section 80C.
In case, one has many life insurance policies from different insurance providers, they can club all the premiums and claim deductions up to Rs 1.50 lakh per annum.
NSC
The amount invested in the National Savings Certificate (NSC) is also eligible for tax deductions under Section 80C.
ULIPs
Unit Linked Insurance Plans (ULIPs) offer coverage to the policyholder and provide substantial returns in the long term. Investors can avail of tax exemptions up to Rs 1.50 lakh on the invested amount under Section 80C.
Five-year post office time deposit scheme
Investors who have parked their money for five years in the post office time deposit scheme can avail the benefit of tax deductions up to Rs 1.50 lakh under Section 80C.
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