Income Tax News: Tax payments must be made on time by all taxpayers. Many taxpayers search for ways to save money on taxes in such circumstances. Taxpayers receive the benefit of tax exemption from income tax agencies. This information may be helpful to you if you’re also searching for a way to reduce your taxes. We will now outline the choices available to you in order to reduce your tax liability.
Section 80C Benefit on FDs
Under Section 80C of the Income Tax Act, you can receive a tax credit of Rs 1.5 lakh on an FD with a five-year duration. We would like to inform you that FD offers 7 to 8 percent interest. Even if the interest on your FD is taxable, you are still eligible for a tax deduction.
PPF Tax Immunity
Public Provident Fund (PPF) investors are likewise immune from taxes. The lock-in time ought to be over for this. Allow us to inform you that there is a 15-year lock-in term. The interest earned in PPF is not subject to taxation.
ELSS Tax Redemptions
You can make tax redemptions under the Equity Linked Savings Scheme (ELSS) of up to Rs 1 lakh in a single year. But there is a capital gains tax on it. A ten percent capital gains tax is applicable.
NSC Interest Rate and Features
The National Savings Certificate (NSC) yields 6.8% interest. This plan carries no risk. You can deduct Rs 1.5 lakh in taxes under this programme in a single fiscal year.
Tax Benefits on Life Insurance Policies
Policies for life insurance also offer tax exemptions. You can deduct up to Rs 1.5 lakh in taxes from this.
National Pension System
The National Pension System is an initiative run by volunteers. Under Income Tax Act Section 80CCD (1B), you are eligible for a tax exemption of up to Rs 50,000 under this plan as well.
Understanding EPF as a Tax-Saving Avenue
Moreover, tax savings are possible with the Employees Provident Fund (EPF). You can take advantage of an 80C tax credit of up to Rs 1.5 lakh in this.
Senior Citizen Savings Plans Overview
Investors in Senior Citizen Savings Plans benefit from a tax exemption. Investors over 60 are eligible for this incentive.
Sukanya Samriddhi Yojana
The Sukanya Samriddhi Yojana (SSY) was introduced to ensure daughters have a good future. There is no tax on the interest earned under this tax-free plan.