2024-07-27 15:05:54
New Delhi: Many people invest in different schemes to save income tax. Some invest in PPF, some in NPS. Some invest in FD, some reduce tax by taking insurance. There are such schemes in which taxpayers can invest as well as save income tax. Tax liability can be reduced or made zero by investing in different sections of income tax. Income tax section 80C is one of them. There are many schemes in which one can invest and avail the benefit of 80C. By investing in schemes related to this section, deduction of up to Rs 1.50 lakh can be made annually.Public Provident Fund (PPF)
This scheme is linked to Section 80C of Income Tax. In this scheme, you can deposit a minimum of Rs 500 and a maximum of Rs 1.50 lakh annually. Currently, this scheme is giving an annual interest of 7.10 percent. On investing in this scheme, the interest received from it is tax free. Not only this, the amount received on maturity is also tax free.
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Sukanya Samridhi Yojana (SSY)
If you have a daughter, you can get income tax deduction on the investment made in Sukanya Samriddhi Yojana (SSY) by opening an account in her name. Under this scheme, an account of a daughter up to 10 years can be opened in any post office or bank. A minimum of Rs 250 and a maximum of Rs 1.50 lakh can be deposited in it annually. Currently, it is getting an interest of 8.20 percent annually.
Senior Citizens Savings Scheme (SCSS)
This tax saving scheme is for people aged 60 years or above. If a person is employed, he can invest in this scheme after retirement. In this, a minimum of Rs 1000 and a maximum of Rs 15 lakh can be deposited annually. Currently, an interest of 8.20 percent is being given annually in this.
Fixed Deposit (FD)
You can also reduce your income tax by investing in fixed deposits (FD). However, not all types of FDs are eligible for deduction. To avail this benefit, you will have to invest in FDs with a lock-in period of 5 years. Currently, it is giving interest at the rate of 7.5 percent. However, this interest rate may vary from bank to bank. Senior citizens get the benefit of higher interest.
National Pension Scheme (NPS)
This scheme is the best option for pension after retirement. Currently, it is giving 9 to 12 percent interest. Under this scheme, you can take a deduction of up to Rs 2 lakh. You can avail a deduction of Rs 1.50 lakh under 80C. Apart from this, an additional deduction of Rs 50 thousand can also be claimed under 80CCD (1B).
Note: Apart from this, there are many other schemes in which you can invest and avail the benefit of 80C. Prominent among these are ELSS, VPF, EPF, NSC, ULIP, life insurance premium etc.