Income Tax saving schemes and Investments in India

How to save Income Tax in India?

Most of the Income tax payees are saving their tax by using the section 80C. Under this section, Indians can save tax up to Rs 1,00,000. We have to submit the evidence for investments and some of the expenditure for gets this benefit.

We can save tax by investing in the following anyone of the schemes and get tax deduction upto Rs 1,00,000.

1. Public Provident Fund (PPF)

Public Provident Fund (PPF) is one of the schemes provided by the Government of India. Any Indian can open account under this scheme. Minimum saving per month is Rs 500 and maximum investment is Rs 70000 per month. Central Government gives 8% interest for investment. PPF account can be opened in all public sector banks.

2. National Savings Certificates

National Savings Certificates or NSC is the tax saving scheme in India. Minimum saving per month is Rs100 and does not have any maximum limit. Interest rate is 8%

3.Post Office Scheme

Post Office Scheme (POS) is another popular tax saving schemes in India. Any person can join in this scheme and any time. Doesn't have any limits for investment.

4.Kisan Vikas Patra

Kisan Vikas Patra is one of the tax saving schemes in India and the investment will get doubled in 8 years. Minimum amount of investment per month is Rs 100.

Other than the above we can claim the tax from any one the below

1. Life Insurance Policies
2. Provident Fund
3. Investments in pension plans
4. Investments in ELSS (Equity Linked Savings schemes) of mutual fund
5. Investments in Infrastructure bonds
6. Housing Loans
7. Tuition fees for children

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