Tax Saving Plan
How is save Tax or Money. Public Provident Fund (PPF) :- A PPF or Public Provident Fund is a tax-free savings scheme offered by the Government of India, wherein interest on the account is set for every quarter and is paid by the government. Taxation: Tax-free investment Criteria: PPF Safety: Government backed; fixed income; high Annual Contribution: Min Rs. 500, Max Rs. 1.5 5 Year Bank Fixed Deposits (FDs) :- The amount invested in a tax -saving fixed deposit is eligible for tax exemption under Section 80C. This amount can be a maximum of Rs 1.5 lakh a year . ... Tax -saving fixed deposits have a lock-in period of 5 years . No premature withdrawals, loans or overdraft facilities are available against tax -saving FDs. Unit Linked Investment Plan (ULIP):- How ULIPs work : When an individual invests in a ULIP , he/...