Income Tax Savings: These folks know how to save taxes in these five methods

 Income Tax Savings: These folks know how to save taxes in these five methods

Income Tax Savings: These folks know how to save taxes in these five methods

Investing Option: The fiscal year 2023–2024 is almost coming to a conclusion. If you are in the category of taxable income, you must pay tax on the money you make within a fiscal year. You may invest in these five tax-saving solutions if you wish to reduce your tax liability for this fiscal year.

Investing Option: The fiscal year 2023–2024 is almost coming to a conclusion. If you are in the category of taxable income, you must pay tax on the money you make within a fiscal year. Investing in these five tax-saving solutions is one way to save money on taxes this fiscal year. In India, there are several investment and savings plans. This aids in their reaching their financial goals. These tax recommendations provide you with favorable returns, tax exemptions, and financial savings.

PPF, or the Public Provident Fund

PPF is an extended government program. Investing in PPFs is tax deductible, and any income earned on those funds is also tax free. Section 80C provides for a tax exemption on donations made to a PPF account. One may invest up to Rs 1.50 lakh in PPF.

The NPS, or National Pension System

India's government is in charge of NPS. Section 80C exempts investments made in NPS. An NPS account allows you to invest up to Rs 2 lakh annually. Investing in NPS helps you to safeguard your retirement. In addition, you get a sizable sum of money upon retirement along with a monthly pension.

Scheme for Equity-Linked Savings (ELSS)

One kind of mutual fund with equity investments is called ELSS. This has a three-year lock-in term, so you can't take money out before then. Under 80C, investments in ELSS are exempt. The long-term capital gains tax rate on investments made using this platform is 10%. On the other hand, a 20% tax is applied to others.

Life Assurance

The Income Tax Act's Section 80C provides an exemption for life insurance premiums. Additionally, there is no tax on the money collected after the insured's death.

Interest on Home Loans

Section 24 of the Income Tax Act exempts interest paid on house loans. Interest rebates are offered for a maximum of Rs 2 lakh annually. Only the first Rs 30,000 of interest on self-occupied (loans secured by the home you live in) and leased property is exempt.