Question: What are tax saving schemes?

Which scheme is best for tax saving?

Investment options under Sec 80C

Investment Returns Lock-in Period
National Pension System (NPS) 12% to 14% Till Retirement
ELSS Funds 15% to 18% 3 years
Unit Linked Insurance Plan (ULIP) Varies with Plan Chosen 5 years
Sukanya Samriddhi Yojana (SSY) 7.60% N/A

How can I reduce my taxable income?

Save Income Tax on Salary

  1. Deductions under Section 80C, Section 80CCC and Section 80CCD. Citizens of India can save tax under these 3 sections. …
  2. Medical Expenses. …
  3. Home Loan. …
  4. Education Loan. …
  5. Shares and Mutual Funds. …
  6. Long Term Capital Gains. …
  7. Sale of Equity Shares. …
  8. Donations.

What are tax saving benefits?

One of the benefits of tax saving is that you can avail deductions for a variety of essential long-term purchases. For instance, there are tax saving deductions in the Income Tax Act for interest accrued on your home loan, your education loan as well as your savings account.

What is maximum tax saving?

What is the Maximum Tax Saving That You Can Avail?

Deductions Max Amount (Rs.)
Standard deduction 50,000
Section 80C 150,000
Section 80CCD(1B) NPS 50,000
Section 80D 25,000
THIS IS IMPORTANT:  Best answer: Does sick leave get taxed?

Is 5 year FD tax free?

As per Section 80C of the Income Tax Act, 1961, interest earned in such FD schemes qualify for tax deductions. A maximum of Rs. 1.5 lakh can be claimed as deductions in a financial year. Such schemes come with a lock-in period of 5 years and tenure can stretch out to 10 years.

What income is tax free?

As per interim budget 2019, Individual taxpayers having taxable annual income up to Rs. 5 lakh will get full tax rebate u/s 87A and therefore will not be required to pay any income tax. However Income tax Slabs and Rates will remain unchanged for the FY2019-20.

In which month tax is deducted from salary?

During June or July or every year, your employer will provide you a TDS certificate with details of tax deducted and submitted to the tax department. This certificate is known as Form 16. If your yearly income only constitutes salaried income, you can just use the Form 16 to file your tax return.

Is SIP tax free?

Is SIP Tax-free? If an investor is investing through SIPs in equity funds or balanced mutual fund schemes, then all the gains made after one year will be considered as long-term capital gains that will be completely tax-free.

How can I save tax on my salary under 10 lakhs?

Tax exemptions can be availed by investing in the following tools:

  1. Senior Citizen Savings Scheme (SCSS)
  2. Sukanya Samriddhi Yojana (SSY)
  3. National Pension Scheme (NPS)
  4. Public Provident Fund (PPF)
  5. National Pension Scheme (NPS)

How can I save tax on 2020 21?

Different investment options that can be claimed for tax deduction under section 80C are:

  1. Employee Provident Fund (EPF)
  2. Public Provident Fund (PPF)
  3. National Savings Certificates (NSC)
  4. 5-year post office or bank saving accounts.
  5. Equity Linked Savings Schemes (ELSS)
  6. Post Office Senior Citizen Scheme.
  7. Tuition fees of Kids.
THIS IS IMPORTANT:  Best answer: Are option payments taxable?