How can I reduce my income tax other than 80C?
How to save tax other than section 80C?
- 80D- for medical insurance premium for self, spouse & dependent parents.
- Section 80EE – Deduction for interest payment of home loan for first home owners.
- Section 24- Interest deduction for housing loan upto Rs 2 lakh.
Which scheme is best for tax saving?
Best Tax-Saving Investments Under Section 80C
| Investment | Returns | Lock-in Period |
|---|---|---|
| Unit Linked Insurance Plan (ULIP) | Returns vary from plan to plan | 5 years |
| Public Provident Fund (PPF) | 7.1% currently | 15 years |
| Sukanya Samriddhi Yojana | 7.60% | 21 years |
| National Savings Certificate | 6.80% | 5 years |
Which saving scheme is tax free?
Public Provident Funds (PPF):PPF is a government-backed long-term tax-free savings scheme. The money deposited with your PPF account will get tax deduction under Section 80C of the Income Tax Act. The interest earned from such savings is also tax-exempt. You can open a PPF account at the nearest bank or post office.
Is HRA over and above 80C?
Is HRA part of 80C? No. HRA exemptions can be claimed under Section 10(13A) or Section 80GG.
Is ELSS covered under 80C?
ELSS mutual funds are the only class of mutual funds that are covered under Section 80C of the Income Tax Act, 1961. By investing in an ELSS, you are entitled to claim a tax rebate of up to Rs 1,50,000 a year.
Is 5 year FD tax free?
One can claim an income tax deduction by investing money in a five-year FD scheme under Section 80C of the Income Tax Act, 1961. The features, benefits, and terms associated with this type of account may not be completely the same as the normal FD accounts.
Which government scheme gives highest interest rate?
The Sukanya Samriddhi Yojana attracts the highest annual interest rate of 8.1% on the principal amount as compared to the other savings scheme. One can open the SSY account at any post office or authorized bank in India.
Are there tax saving options beyond Section 80C?
Key Takeaways: Section 80C of the Indian Income Tax Act is the first recourse for the NRI tax saver. But are there tax saving options beyond those under section 80C? Yes, there are and this article will tell you about them. Everybody with a taxable income wants to save on their taxes.
What is Section 80C of the Income Tax Act?
Section 80C is the most well-known provision of the Income Tax Act of 1961, under which rebate of up to Rs. 1.5 Lakh is granted on several loan products and other investment tools. However, you should also be aware of numerous other instruments aiming to reduce your taxable income.
What is SEC 80c and what are its benefits?
What is Sec 80C? Sec 80c is the section for deduction of income tax which person get benefit by investing in specified category mentioned in the said section of Income Tax Act,1961. The benefit of the section is available to the extent of limit, i.e., Rs.1,50,000. There are several schemes under SEC 80C like ELSS, PPF etc.
Are you stuck with 80C tax benefits only?
Individuals often get stuck with 80C tax benefits only during tax planning. While there is little doubt 80C investments are best for tax saving purposes, there are other investment options which can help you save tax if invested smartly. Here are 8 best tax saving options other than Sec 80C.