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/she needs to pay a fixed premium for the selected cover amount. While some portion of the premium is used for providing insurance coverage the balance portion is invested in an equity or debt instrument. Share.

Equity Linked Saving Schemes (ELSS):- ELSS investments can be made in a systematic manner through a Systematic Investment Plan or SIP. With SIP, an investor can begin investing with an amount as low as Rs. 500 per month.

Premium of Life Insurance:- An insurance premium is the amount of money an individual or business pays for an insurance policy. Insurance premiums are paid for policies that cover healthcare, auto, home, life, and others. Once earned, the premium is income for the insurance company.

National Pension Scheme:- The scheme allows subscribers to contribute regularly in a pension account during their working life. On retirement, subscribers can withdraw a part of the corpus in a lumpsum and use the remaining corpus to buy an annuity to secure a regular income after retirement.

Senior Citizens Savings Scheme (SCSS):- Senior Citizen Savings Scheme (SCSS) is a government-sponsored savings instrument for individuals above the age of 60. The Government of India introduced this scheme in 2004 intending to provide senior citizens with a steady and secure source of income for their post-retirement phase.

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