Best Tax Exempt Savings Plans
Let us see some of the best tax-exempt savings plans for maximum savings.
1. Unit Linked Insurance Plan (ULIP)
Unit Linked Insurance Plan is a long-term investment plan that helps in insuring and providing financial security to the investor and his family. Additionally, it also provides the facility of investing one’s money for money growth. Another feature of the Unit Linked Insurance Plan is that it allows for the facility of deduction from taxable income, i.e., the premiums paid by the investor is eligible for tax deduction under 80Cof the Income Tax Act. Hence, the Unit Linked Insurance Plan provides multiple benefits of investing your money and insurance and savings from income tax.
2. Equity-Linked Saving Scheme Mutual Fund (ELSS)
Equity-Linked Saving Scheme Mutual is a long-term investment plan wherein the saving from income tax provided to the insurer is up to 1.5 lakhs under Section 80c of the Income Tax Act. The lock-in period of the Equity-Linked Scheme is of 3 years.
3. National Pension Scheme (NPS)
National Pension Scheme is a long-term investment plan wherein investors invest their money at regular time intervals for pension facilities. After retirement, investors will receive the invested amount in the form of monthly incomes. One of the benefits of investing in the National Pension Scheme is that the premiums paid by the investor are eligible for additional tax deductions under Section 80(CCD) of Income Tax Act up to Rs. 50,000 and in addition to 80C limit of 1.5 lakhs. The premiums paid by the investor are very nominal and can be afforded by people easily. Therefore, National Pension Scheme is an ideal investment for people as the premiums are economical as it provides the benefit of saving from income tax.
4. Public Provident Fund (PPF)
Public Provident Fund (PPF) is a long-term investment plan with a minimum tenure period of 15 years. It has a provision of saving from income tax for up to Rs 1.5 lakhs under Section 80c of the Income Tax Act as the premiums paid by the insurer are eligible for tax deductions. Public Provident Fund is an ideal investment plan as it provides stable returns as well as the facility of saving from income tax.
Conclusion
Investing in an investment plan has become an integral part of financial security and money growth and an ideal way of saving from income tax. You should go for a well-known and renowned insurance company that provides ideal investment plans along with the facility of saving from income tax under Section 80C of the Income Tax Act.
