In India most of the citizen residing in India pay income tax but, highest number of tax payer are in Mumbai , well it is always good to pay income tax but when it comes to hard earned money you always want income tax saving option , there are people looking for tax saving option well they want to invest and that to in such a way that they are able to save tax and also they should get benefit if once they invest in certain product main aim is to earn high returns on invest meant and at same time they want there should be safety on their invested amount.
It is not easy for everyone to understand the income tax laws ,and they are scared that how to deal with their income tax issues well saving is not that difficult only thing is that you take many steps unknowingly which you are not aware of that this step or this thing will help you in saving tax so for perfect solution you need someone to guide regarding your income tax saving so tax consultancy firm can help you in this direction.
There are some income tax saving option which are mentioned by consultancy they are mentioned below
Indemnity under 80C Income Tax
- INVESTMENT IN EQUITY: investment in equity schemes help investor in two different way, first benefit is that when you invest RS1.5 lakhs you get tax benefit according section 80 C of income tax act ,1961 at same time investment is done generally for 3 years which is the minimum tenure for investment in mutual funds it depends on the market condition for those funds according to that you can get returns on your
- Provident fund: it is one of the best way of saving utilized by people since 1968 it has been favorite for income tax saving minimum amount for PPF is 500 and you can save maximum up to one lakh fifty thousand , this tenure is for 15 years and you can keep extending after every 5 years. Provident fund is a 15 year scheme.
(C ) PROVIDENT FUND for EMPLOYEES: The (EPF) which is also known as employees provident fund it is very much beneficial for any person who is salaried ,it helps in saving as well as it helps in income tax saving . any salaried person has to deposit 12% of his basic salary in his EPF account same amount is contributed by employer . The interest rate is around 8.55% this keep on changing as updated by the Employees’ Provident Fund Organization
(D) VOLUNTARY PROVIDENT FUND SCHEME: In EPF employee can contribute up to 12% and if he wish he can contribute upto 100% of his basic salary and this is known as voluntary provident fund, and this help in getting tax free interest upto8.4%
( e ) SUKANYA SAMRIDDHI YOJANA FOR GIRLS: The sukanya samriddhi yojana account can be opened till 10 years of girl child minimum deposit is ,1000 RS and you can invest up to 1 lakh 50 thousand during a financial year . This yojana is currently providing 8.1% of interest and also provides income tax profits.
(f) Saving scheme offered by postal department is NPS: National pension system is offered by India postal services it is a one of the best scheme and the risk is zero. The amount invested gets individual certain interest which is taxable, but there is one benefit that you get the benefit of deduction under section 80 c
(g) Five years fixed deposits scheme: This scheme is offered by Indian post office. this account works as any fixed deposit account only difference is that they have a locking period off 5 years
and they provide double benefit on investment and also provide tax benefits.
(h)Insurance Plans: insurance plan are different for different ages and according to age and individual has to pay the premium, against premium one gets the life coverage he has to pay the premium on due dates . The maturity of insurance and suppose individual dies he gets the tax benefit.