Income Tax News: Investments must be made after conducting adequate research. The market offers a wide range of investment options, from mutual funds and real estate to stocks and bonds. It’s critical to evaluate your timeline, risk tolerance, and financial goals prior to making any selections.
10 Little-Known Investment Ideas to Reduce Taxes Before March 31st
ELSS Funds Investment
Mutual funds with a lock-in duration of three years are known as Equity Linked Savings Scheme (ELSS) Funds. Section 80C of the Income Tax Act allows tax exemptions up to ₹1.5 lakhs, which is what these funds offer.
Sukanya Samriddhi Yojana
This programme is specifically intended for parents of girls. A parent who qualifies for this scheme can save up to ₹1.5 lakh annually, with a 21-year maturity period.
National Pension System
NPS is a retirement-focused pension plan that qualifies for a ₹1.5 lakh tax credit under Section 80C and enables contributions up to ₹50,000 annually.
Senior Citizen Savings Scheme
Senior citizens participating in the government-backed SCSS programme can save up to ₹15 lakhs in a fiscal year and receive a ₹1.5 lakhs tax deduction under Section 80C of the Income Tax Act.
Public Provident Fund
For individuals who wish to save for retirement, PPF is the best tax-saving option. A maximum of ₹1.5 lakhs can be invested in a financial year, and up to ₹1.5 lakhs can be deducted from taxes.
National Savings Certificates
The post office issues NSCs, which are great for people searching for a risk-free investment with certain profits. A tax deduction of up to ₹1.5 lakhs can be claimed for investments made within a financial year.
Invest in mutual funds focused on equity
Mutual funds that prioritise equity are a great choice for individuals who wish to engage in the stock market but require additional time or knowledge. A maximum of ₹1.5 lakhs can be invested in a financial year, and up to ₹1.5 lakhs can be deducted from taxes.
Health Insurance
Under Section 80D of the Income Tax Act, health insurance policies provide a tax deduction of up to ₹25,000 for individuals and ₹50,000 for families.
Home Loan
Under Section 24 of the Income Tax Act, you can deduct up to ₹2 lakhs in taxes from the interest you pay on a home loan.
Invest Unit-Linked Insurance Policies
Investment and insurance are combined in ULIPs. Under Section 80C, they provide a tax deduction of up to ₹1.5 lakhs. These are just a few of the lesser-known investment possibilities that can be used to increase tax savings before the deadline of March 31st. Thus, take your time to investigate and determine which option best suits your requirements.
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