You can take the help of 5 government schemes to save tax, but you have to take a decision before 31 March 2022.
If you have not yet taken any decision regarding tax saving , then you should take a decision quickly. For your information, let us tell you that before 31 March 2022, decisions regarding investment will have to be taken.
Actually, for tax saving, a person has to invest ahead of time and then the documents related to investment have to be given as proof to the Income Tax Department. You can save tax by investing in all government savings schemes
Let us tell you that there are many schemes in which you get better returns and also the facility of tax exemption. Apart from this, investing in them is absolutely safe. Government Small Saving Scheme includes NSC, Sukanya Samriddhi Yojana, PPF, NPS.
1. Public Provident Fund (PPF)
PPF is the most famous tax saving scheme in our country . You can invest up to Rs 1.5 lakh annually in PPF. The government gives a guarantee on investment in PPF, that is, your money will not sink. At present, the government is paying 7.1 percent annual interest on PPF. In this, income tax exemption is available on investment under section 80C. Money in Public Provident Fund remains locked in for 15 years.
2. National Pension System (NPS)
National Pension System (NPS) is a government retirement savings scheme. Under Section 80C of the Income Tax Act, in addition to Rs 1.5 lakh, an additional tax benefit of up to Rs 50 thousand can be taken. By investing in NPS, you can take advantage of income tax exemption up to a total of Rs 2 lakh.
he government is also promoting NPS. You can start investing from Rs 1000 a month. Any Indian citizen whose age is between 18 to 65 years can take advantage of this scheme. To take advantage of the scheme, an account has to be opened first. You can open an NPS account in any bank.
3. Sukanya Samriddhi Yojana (SSY)
You can save tax by opening an account in Sukanya Samriddhi Yojana in the name of your daughter who is less than 10 years of age. This is a small savings scheme, which has been launched by the Modi government. Under this scheme, you can get income tax exemption by depositing a maximum of Rs 1.5 lakh in a year. At present, the government is giving 7.6 percent annual interest on this scheme.
4. Senior Citizen Saving Scheme (SCSS)
This is a better saving scheme for the elderly. You can open this savings account in a bank or post office. Income tax exemption can be availed under 80C on the amount deposited in this account. In this, you can invest up to a maximum of Rs 1.5 lakh annually. At present, the government is giving 7.4 percent interest annually.
5. Equity Linked Savings Scheme (ELSS)
Equity Linked Savings Scheme is a type of Equity Fund and it is the only Mutual Fund which can avail tax exemption of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. In ELSS, returns up to 1 lakh per annum are not taxed.
ELSS has the shortest lock-in period of 3 years which is better than all the tax saving investment options. Apart from this, you can also save your tax by buying Tax Saving FD and Unit Linked Insurance Plan.
