Both lump sum investment and the amount invested through a systematic investment plan (SIP) qualifies for the deduction. Investment in ELSS funds qualifies for deduction under section 80C of the income tax act up to a maximum of Rs. Furthermore, the fund has a mandatory lock-in period of 3 years which is the shortest amongst all the investment products. ELSS Mutual FundsĮquity Linked Savings Schemes are mutual fund investment schemes that invest a large percentage of their portfolio in equity. If the life insurance policy is purchased after 1st April 2012, then the premium paid is eligible for tax deduction up to 10% of the sum assured. The policy is in his own name or in the name of their spouse or child The taxpayer purchases a life insurance policy on or before 31st March 2012Ģ.
In terms of the deduction under section 80C 1961, the taxpayer can claim 20% of tax deduction on the premium paid. In the case wherein the money goes to the nominee’s of the person insured, the same remains as a tax exemption in the hands of the nominee. The income is tax-free if the premium is not more than 10% of the sum assured. Furthermore, as per section 10(10D) income on the maturity of the policy is tax free. Under section 80C of the income tax act 1961, the premium paid towards the purchase of a life insurance policy qualifies for deduction up to Rs.
By purchasing a life insurance policy, the taxpayer can avail of the benefit under the income tax act. It ensures that one’s family is financially balanced in the case of an event of death. ULIP Life Insurance Plan is one of the most important investment plans in India. We have listed the best tax saving schemes options for 2020-21 in this article. The goal must be to invest in the best-suited investment option along with income tax saving.
LONG TERM SAVINGS PLANNER HOW TO
While planning on how to save tax in India, you must also ensure that your goal is not just tax saving. In this article, we have listed each of the best tax saving investment options in India to help you compare and make a well-informed investment decision. The answer could be a lack of knowledge or struggles in fitting the best-suited choice in your investment planning. While we all aim to save taxes in India why only a few of us succeed. This will ensure you don’t pay more taxes and save taxes in India along with year-long returns on tax saving investment. The ideal time to plan for tax saving investments is the beginning of the financial year. You can save tax and earn returns with the best tax saving schemes in India. While tax planning is crucial, tax saving schemes are also essential. How to save tax or rather how to plan your investment is a question that bothers each one of us.
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