Invest this way to save Income Tax of Thousands of Rupees. Hurry Up! Before its too late
Just a week later, on March 31, the current financial year is coming to an end, a new fiscal year will be implemented from April 1, if you have not yet made arrangements to save tax in this financial year, then you still have time. You can save a lot of tax by investing in many tax-saving schemes. Just like you can invest in ELSS of mutual funds, you can save tax easily by putting money in PPF and fixed deposits.
There is still a chance to save income tax
In order to save income tax, there is a big fat section of section 80C and 80D. There are a lot of options in section 80C, but remember that even with all the options, the limit should not be more than Rs 1.5 lakh. When you invest, you will file an income tax return for this financial year 2020-21 by 31 July, at that time you can get a tax refund by giving information about this investment.
Save tax by investing in section 80C
Section 80C is the most popular tax-saving option. There are many options including PPF, National Savings Certificate ELSS funds, Sukanya Samriddhi, and 5-year fixed deposits. If you invest in it before March 31, then you will get a tax benefit on the investment of 1.5 lakh rupees. Apart from this, home loan principal and children’s tuition fees are also included in this. Also, if you want senior citizens, you can save tax by investing in the Senior Citizens Saving Scheme (SCSS). There is also a tax exemption under the 80C on the premium of a life insurance policy.
Section 80D
If you have not taken any medical insurance till now, then you have a chance, if you take your first medical insurance before March 31, you will get a tax rebate on a premium up to Rs 25,000, for senior citizens, this tax exemption is Rs 50,000. However, it is not right to do so at the last moment only to save tax. You should always take medical insurance in advance.
Additional discount on NPS
You can get an additional rebate of Rs 50,000 by investing in NPS. The government gives an additional exemption of Rs 50,000 for promoting investment in NPS under Section 80CCD (1B), which is in addition to the Rs 1.5 lakh exemption available under Section 80CCE. That is, you can get a tax rebate on the investment of a total of 2 lakh rupees.