People are mostly worried and often remain engaged in doing tax planning so that they can avail maximum tax exemption and pay less tax. Here are Six such schemes wherein one can invest and take advantage of a tax rebate with maximum return.
Home Loan
Under Section 80EEA, an additional tax exemption of Rs 1.5 lakh can be taken on the interest of the home loan. However, its first condition is that the stamp value of the house should not exceed Rs 45 lakh, and The home loan is taken one year before the month in which you are paying tax. For this, the home area should not be more than 60 square meters or 645 square feet. This condition is for metro cities. The home area for other cities can be a maximum of 90 meters or 968 square feet.
ULIP
ULIPs are a type of insurance that offers risk cover as well as an investment option. It invests in stocks, bonds, mutual funds. If you invest online, then no commission will be given.
National Pension Scheme
If you have taken benefit of the National Pension Scheme, then you can avail of income tax up to 50 thousand under section 80CCD (1B). In this way, you can avail of tax exemption up to a total of 2 lakh rupees by adding section 80CCD (1B) and 80C.
Insurance premium
One can avail of tax exemption under section 80C on the premium paid on life insurance or insurance policy. One does not have to get a new plan every year to get tax benefits under section 80C and can get a tax rebate on the premium paid every year.
Saving Bank Account
One can get tax exemption under Section 80 TTA of Income Tax Act on the interest you get on a savings account in a bank. While filing ITR, one can get an exemption by including this amount in the income column from other sources. Its limit is up to Rs 10,000 annually.
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Fixed Deposits
The Fixed Deposit Scheme (FD) is the oldest and safest investment scheme to save income tax under Section 80C of Income Tax. Banks are currently paying interest between 4.5% and 7.5% per annum on this. Interest in FD is taxable. If you are investing in FD to save tax, then you have to invest for a lock-in period of 5 years to avail tax benefits.