Income Tax News: When it comes to influencing the economy and safeguarding their financial future, women investors are crucial. They can use tax-saving investments to both lower their tax liability and gradually increase their wealth. Specifically designed for female investors, these six major long-term tax-saving investing possibilities are:
Public Provident Fund (PPF)
PPF is a well-liked long-term investment choice that provides Income Tax Act Section 80C tax advantages. With a 15-year term and a fixed interest rate that is compounded annually, it is a good option for accumulating retirement savings. The yearly investment limit for women is Rs. 1.5 lakh, and whatever interest they earn is tax-free.
Equity-Linked Savings Scheme (ELSS)
ELSS is a tax-advantaged mutual fund with a focus on stocks that has the potential to yield significant long-term gains. Under Section 80C, investments made in ELSS are eligible for tax deductions of up to Rs. 1.5 lakh each year. Tax savings and the strength of equity markets are two advantages for female investors.
National Pension System (NPS)
The Pension Fund Regulatory and Development Authority oversees NPS, a voluntary retirement savings plan (PFRDA). Under Section 80CCD(1B) of the Income Tax Act, it enables investors to make contributions to their pension accounts while providing tax benefits. Women investors can take advantage of tax breaks while building a retirement fund.
Sukanya Samriddhi Yojana (SSY)
A savings program supported by the government, SSY aims to improve the welfare of girls. In addition to favorable interest rates, it provides Section 80C tax advantages. For their daughters, female investors might form an SSY account to cover future marriage and education costs.
National Savings Certificate (NSC)
The Government of India offers the NSC, a fixed-income investment scheme. It gives tax savings under Section 80C and has a five- or ten-year maturity period. NSC investments allow women investors to save taxes while earning guaranteed returns.
Unit-Linked Insurance Plan (ULIP)
Under Section 80C, ULIPs—insurance-cum-investment products—offer tax advantages. They offer the chance to invest in debt, equity, or a combination of the two in addition to life insurance. Women investors have the ability to tailor their investment portfolios according to their financial objectives and risk tolerance.