Best Tax Saving investment plans and ideas in India


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Best Tax Saving investment plans and ideas in India:

Best Tax Saving investment plans and ideas in India


Introduction Do you have investment plans in place? If not, the best time to start is now and the best and easiest way is online investment. As far tax savings is concerned, there are many tax savings investment plans in India allowed under the Income Tax Act . Following are 4 of the best  tax saving investment plans  in India that you can explore as an investor:

1. Life and health insurance plans:

1. Life and health insurance plans Traditional yet effective are life and health insurance plans as a tax saving investment. If you are paying life insurance premiums, under Section 80C of the Income Tax Act, you will save the premium paid by you on your life insurance plan . As per section 10(10D) of Income Tax Act, the total amount that is rewarded to the beneficiary of an insurance plan is not included as part of taxable income.

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Health insurance plans allow investors to get a deduction under Section 80D of the Income Tax Act on the premium paid for your health insurance plan, which will be deducted from your total taxable income. Please note that the upper limit for this deduction is Rs. 15,000, which can be extended up to Rs. 20,000 if you fall in the category of senior citizens. Here’s the best part, if you plan a health insurance for yourself and your parents, you can get a total deduction of Rs. 35,000 on your taxable income.

2. Tax Saving ELSS schemes:

2. Tax Saving ELSS schemes ELSS schemes are mutual fund schemes that are a highly effective tax saving instrument. Designed specifically for tax savings,  ELSS schemes  are little risky as an investment instrument. That said, they also tend to provide you with higher returns on your investment. It is an equity-based tax savings scheme. You can invest in tax savings ELSS schemes either in lumpsum or through the SIP route .

3. National Pension Plan (NPS):

3. National Pension Plan (NPS ) NPS is growing in popularity in the past few years as a tax savings instrument that will also secure your retired life. It is an amazingly effective tax saving instrument for salaried employees with regular monthly income. It allows you as a salaried employee to save more the overall tax saving deduction limit of Rs. 1 lakh under section 80C of the Income Tax Act. NPS allows your employer to contribute certain proportion of your basic salary, which is allowable as a tax deduction. You can save an additional tax of Rs.50,000, over and above the Rs. 100,000 limit under 80C under section 80CCD1B .

4. Public Provident Fund Schemes (PPF):

4. Public Provident Fund Schemes (PPF ) Traditional but tried and tested is PPF as a tax savings instrument under 80Cwith an upper cap of Rs. 70,000. The interest income that you will receive on PPF is also tax-free. However, you need to start invested for 15 years in PPF. Thus , it along with tax savings FDs may not be the most ideal options for short-term investors .

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To know more about the best tax saving investment plans and ideas, give us a call on 022 28584545 .

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