One of the greatest boons to mankind has been the introduction of tax saving schemes that let you save tax along with enjoying the benefits. And although that is the case, not many are aware of all the schemes that they could invest in to save tax. Most are just ignorant regarding all the plans with the thought that these plans could turn out to be a risky venture after all.
So if these doubts are what’s plaguing your mind, the best way to put your mind at ease would be research. Finding out more about these schemes and taking help from those informed can certainly help a great deal.
Here are a few simple tips for tax saving that you could refer to for this year:
- Don’t make hasty decisions just because ‘someone told you so’. Think before you act. Take help from someone informed about the matter to know you are on the right track.
- While most people would consider investing in Public Provident Funds (PPFs), you should first know that the Employee Provident Fund (EPF) some of you pay in your company stands as good as a PPF investment. Figure out the exact amount you pay as EPF annually to know how much more you would need to invest for.
- Pension fund is something that almost everyone begins investing in at an early age. Since it is also a great tax saving scheme, you can enjoy a secured future along with tax benefits. For those who haven’t invested in one yet, start now. Certainly a win-win situation.
- For those of you who pay premium on their home loans, which would definitely be a large number of people, you can enjoy tax benefits under section 80C. Find out the annual principle amount paid for the given year to calculate your tax liabilities carefully.
- Invest in a life insurance policy. Doing this will certainly reduce your greatest fear where your family is concerned, being confident in the fact that you would still be providing for their needs even in your absence. Aegon Life offer life insurance policies such as iTerm and iReturn with tax benefits and features that are more than beneficial.
- Investing in a five year fixed deposit (FD) for the given financial year, too, can be counted for tax deduction according to section 80C. And with the high returns one can receive through an FD, you might as well go ahead with it.
- Rajiv Gandhi Equity Savings Scheme (RGESS) is another plan to invest in as a way of tax saving. Being a government scheme introduced back in 2013, it certainly is reliable and helpful to avail for first time retail investors. Aegon Life also offers this scheme for those interested.
- The biggest tip for those looking for saving options would be investing in health insurance plans. There is no doubt regarding how much it would benefit the insured, making it an investment with dual benefits.
- Believe it or not, education too can help you save taxes. Taking an education loan, whether for your children, your spouse, or for yourself, can help you enjoy full deduction on interest paid on the loan every year.
- If you have aged parents to look after, investing in their name, if they do not have a high income, can help you save up on taxes due to the tax exemption of 2.4 lakh a year.
Want to know your taxes? Access our easy to use tax calculator, and plan your finances.
So, start saving!