As the financial year 2023-24 approaches its end, it’s crucial to explore effective ways to save on income tax.
Discover five strategic tips that not only provide tax exemptions but also offer promising returns on your investments.
1. Public Provident Fund (PPF)
Invest Smartly, Save Intelligently
The Public Provident Fund (PPF) emerges as a long-term government scheme offering tax exemption on both invested amounts and accrued interest.
Learn how contributing to PPF under Section 80C can lead to substantial tax savings, with a maximum investment limit of Rs 1.50 lakh.
2. National Pension System (NPS)
Securing Your Future While Saving Taxes
Explore the Government of India’s National Pension System (NPS), a tax-exempted investment avenue under Section 80C.
With the ability to invest up to Rs 2 lakh annually, discover how NPS not only safeguards your retirement but also provides a steady pension income.
3. Equity-Linked Savings Scheme (ELSS)
Unlocking Tax Savings Through Strategic Investments
Delve into Equity-Linked Savings Schemes (ELSS), a type of mutual fund with a unique focus on equity.
Uncover the benefits of the three-year lock-in period and the tax advantages offered under Section 80C.
Learn how ELSS provides an attractive alternative with a 10% long-term capital gains tax.
4. Life Insurance
Protecting Loved Ones While Reducing Tax Liability
Explore the tax-saving potential of life insurance premiums under Section 80C. Additionally, understand the tax implications on the money received after the insured’s demise.
Discover how life insurance serves a dual purpose by ensuring financial security for your loved ones and offering tax benefits.
5. Home Loan Interest
Homeownership with Added Tax Benefits
Navigate the intricacies of tax exemptions on home loan interest under Section 24. Uncover the rebates available, with a focus on interest payments up to Rs 2 lakh annually.
Gain insights into the nuances of exemptions for self-occupied and rented properties, offering a comprehensive understanding of tax-saving opportunities.
