rajkotupdates.news : tax saving pf fd and insurance tax relief : In this post, you will get to know all about Tax Saving PF, FD and Insurance Tax Relief. It’s very common that every salaried person would like to save tax with the commencement of the Income Tax Return (ITR) filing season. The best investment plan not only saves tax, but it can also prepare a good fund for retirement. In this article, you will read all about 5 tax saving options, where you can create a retirement fund along with saving tax.
After reading this article, you will know all about tax saving tips, best ways to save tax and what are the easiest ways to save tax using PF, FD and Insurance.
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Let’s see what are the best ways to save your tax. Find below there are 5 easy ways to save your tax. Those are,
- 1. Tax Exemption on PPF, LIC Premium
- 2. Tax Exemption on EPF
- 3. Tax Exemption on ELSS
- 4. Tax Exemption on Tax Savings FDs
- 5. Tax Exemption on NPS
1. Tax Exemption on PPF & LIC Premium
PPF of Public Provident Fund is one of the best tax saving options from this list. The best part of this plan is, with maturity amount and interest is also tax free. Tax Exemption on PPF & LIC Premium is an awesome way to make a safe investment and a large fund in the long term. Also the Tax deduction is available under section 80C on investment in PPF accounts.
On the other hand, people who have taken a LIC policy can claim tax deduction on its premium. In 80C, tax exemption can be taken up to a maximum of Rs1.50 lakh.
2. Tax Exemption on EPF.
EPF or Employees Provident Fund is another easiest tax saving option for salaried people. You will get tax exemption if it is available under 80C. All we know is that the EPF is managed by the Central Board of Trustees. Remember that the interest earned in the PF account is tax free up to Rs 2.5 lakh per year. This is a better option to build a retirement fund.
3. Tax Exemption on ELSS
Here, people will enjoy getting the benefit of tax deduction under section 80C on investment in Equity Linked Savings Scheme (ELSS) of Mutual Funds. You can easily save tax with better returns on ELSS.
This is the primary reason why ELSS is a better tax saving option for salaried individuals due to the double benefit.
4. Tax Exemption on Tax Savings FDs
Tax saving fixed deposit is also a good option to save tax for the salary earners. This option is like an FD, in which you can save tax up to Rs 1.5 lakh.
This option has a lock-in period of 5 years of time. This is a safe tax saving option for the salaried people. Make a note that the return received on maturity of tax saving FD is taxable.
5. Tax Exemption on NPS
NPS or National Pension Scheme can be availed of tax exemption under section 80 CCE up to the limit of 1.5 lakhs. Moreover, in NPS, you get an additional exemption of Rs.50,000 under section 80 CCD (1B). NPS is a good long term tax saving option for the salaried class. It is also one of the profitable options and a better scheme for retirement.
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I hope this article, rajkot updates news tax saving pf fd and insurance tax relief might have helped you to learn about the maths of tax relief in 2023. Thanks for reading and please share this article.