India is a nation that follows tax system. In India, taxes are one of the biggest sources of income. These taxes are determined by Central and State governments. Taxes are divided into two categories- Direct taxes and indirect taxes. People expect a lot every year from the Government regarding budget. Every year, Finance Minister presents the budget in Parliament. This year, budget will be presented by Arun Jaitley on 1 February, 2018. As March 31 is approaching i.e. the closure of financial year so it is the time to calculate income tax. Paying taxes is one of the biggest issues people have in India. People look for the ways to save their taxes. Check out these smart ways to save your tax.
PPF (Public Provident Fund)
PPF is one of the popular schemes. PPF is a 15-year scheme. In this, principal and the interest earned are tax-free. The maximum amount that can be deposited in a financial year is Rs 1.5 lakh. Even it can be opened on behalf of a minor but an elder guardian is required.
SSY (Sukanya Samriddhi Yojana)
SSY is a small deposit scheme for the girl child. This scheme provides income-tax benefit. The account can be opened with an amount of ₹ 1000 any time till the time she turns 10. In a financial year, a maximum amount of Rs 1.5 lakh can be deposited. The annual deposit qualifies for Section 80C benefit and the maturity benefits are non-taxable.
EPF (Employees’ Provident Fund)
EPF is also an effective avenue to save tax. In this, 12 percent of basic salary is contributed by employee each month and an equal share is contributed by the employer. The contribution by employee will get tax benefit under Section 80C up to a limit of Rs 1.5 lakh/year and the interest on the contributions will be tax-free.
ULIP (Unit linked insurance plan) Income Tax
Ulip is a hybrid product. It provides life insurance and helps in channelizing one’s savings into various market-linked assets. When the investor exits the policy after five years or on maturity, it is tax-free. Income Tax
ELSS (Equity-linked savings schemes) Income Tax
ELSS are diversified equity mutual funds. In this, investment amount will get tax benefit under Section 80C upto a limit of Rs 1.5 lakh/year. Even the dividends in an equity scheme are tax-free. Income Tax