Tax saving has no doubt been on your minds all year round. And as the financial year comes to an end, so would your patience, when saving tax is a concern. Going through every option that offers tax deduction will be your first priority. This is hardly any surprise considering how much people rely on their savings and finances in their day-to-day life.
Investment provides the best escape from tax payments in the form of various avenues that let you secure your future, along with tax benefits. As most of us are masters at figuring out the best way to save money, finding out these simple investment schemes to save tax might have just been a walk in the park for you. To check whether you have missed something, here’s a list of some of the easiest and simplest of options for you to choose from:
- For those of you looking for tax saving schemes that would get you high returns, Public Provident Funds are the way to go. Having been the best investment avenue over the past few years, this scheme lets you earn an interest rate set every year based on the conditions, keeping you on par with inflation. Once invested, you may find it difficult to withdraw before you complete at least five years of investment, but the returns are surly worth the wait.
- One of the simplest tax saving options, investing in a life insurance policy would not only help you save tax but also offer security for your loved ones eventually. This surely makes it a good investment option considering how much help it would be to your family in your absence. Taking a life insurance policy such as AegonLife iTerm or iMax is one of the way to save taxes in a reliable way.
- Another great investment avenue, no matter what your age, is investing in pension schemes. You may think it too early to opt for a scheme such as this but the earlier you begin, the more you would have at your disposal when you eventually retire. And considering the lavish retirement goals people usually tend to have, a pension scheme investment might be good tax saving option.
Apart from the schemes mentioned above, you can also enjoy tax benefits if you are paying off your home loan principle amount. Tuition fees paid toward the education of a maximum of two children also allow tax exemptions, making education, and your children, a boon for you.
Want to know your taxes? Access our easy to use tax calculator, and plan your finances.
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