Five days to go for March 31: Here are 5 ways to save your taxes
For those who have not made investments yet, here’s how to make a quick saving on your tax return filing
There is still five more days to go before 2016-17 ends. Most of you would have made those investments to save taxes under the income tax policy. But for those who have not made those investments, here is a list of five things that you can invest in, in these five days to make a quick saving on your tax return filing.
1. Public Provident Fund: Opening a PPF account at any nationalised bank, including the State Bank of India, takes less than half an hour, if you are carrying documents of your residential and address proof. The upper limit in of annual deposit in a PPF account is Rs 1,50,000, which is fully exempted from taxes. You can deposit as little as Rs 500.
2. Equity-linked Savings Schemes: ELSS or equity-linked savings schemes (ELSS) of a mutual fund can help in making a quick buck out of your tax saving. Apart from ELSS, you can also make investments in five-year notified bank deposits, annuity plan of LIC to get the benefit of tax deduction up to Rs 1,50,000 under Section 80C of the Income Tax Act. The Rajiv Gandhi Equity Scheme offers an option to get tax break on Rs 25,000 or 50% of the amount invested, whichever is lower.
3. Home loans: If you have some additional cash or saving in the bank, and you want to make some saving over the limits of LIC, PPF and ELSS deposits, and have availed for a home loan, home owners can also get up to Rs 1,50,000 in principal repayment of home loans.
4. National Pension Scheme: The NPS also offers an opportunity to save as much as Rs 1,50,000 under Section 80CCD(1). An additional Rs 50,000 can be saved by investing in NPS to get a tax break under Section 80CCD(1B).
5. Mediclaims: Investment in a medical insurance scheme is exempt up to Rs 25,000 for self, spouse and children under Section 80D of the Income Tax Act. The amount of tax deduction goes up to Rs 30,000 if parents above 60 years are covered.