You have many schemes for tax saving. Such as Senior Citizen Savings Scheme, Public Provident Fund, Sukanya Samriddhi Yojana, let’s know the complete details.

1. Senior Citizen Savings Scheme

Senior Citizen Savings Scheme can be opened after 60 years of age or more, it gives interest at the rate of 8.2% per annum. A person taking VRS who is more than 55 years but less than 60 years can also open this account. Under this scheme, money can be invested for 5 years. Please note that after maturity, the scheme can be extended by 3 years. A maximum of 15 lakh rupees can be invested under this scheme.

2. Sukanya Samriddhi Yojana

Under Sukanya Samriddhi Yojana, an account is opened in a post office or bank after the birth of the girl child and before she turns 10 years old. You can open an account for Rs 250. It gives an interest rate of 8.2% per annum which is more than FD. You can deposit a maximum of Rs 1.5 lakh in any one financial year under this scheme.

3. Public Provident Fund

Currently, 7.1% interest is being given on the amount deposited in Public Provident Fund (PPF) accounts. PPF account can be opened for 15 years, which can be extended for another 5 years. You can open an account in PPF with a minimum of Rs 500. Please note that it is necessary to invest at least Rs 500 in a financial year. You can invest a maximum of Rs 1.5 lakh in a year.

4. National Savings Certificate

Investment in Post Office National Savings Certificate (NSC) is getting 7.7% annual interest. To open this account, you have to invest a minimum of Rs 1000, there is no maximum limit.

5. Time Deposit Scheme

Time deposit scheme is a type of fixed deposit. In this, you can take advantage of fixed returns and interest payment by investing a lump sum amount in a fixed time. In this, interest of 6.9 to 7.5% is being given for a period of 1 to 5 years. You can avail tax exemption under 80C by investing for 5 years. Let us tell you that on depositing in time deposit for 5 years, you will get interest at the rate of 7% per annum. In this, you have to invest a minimum of Rs 1000 and there is no limit on maximum investment.

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The post Tax saving Scheme: You can Invest in THESE schemes for Tax Saving, You Have only 1 Month’s Time first appeared on Rightsofemployees.com.

The financial year 2023-24 is about to end and only a few days are left to save tax this year. If you want to save this year, then you will have to invest before March 31, because the new financial year 2024-25 will start from April 1, 2024. The popular fixed deposit scheme of the bank can be useful in saving tax. But for this you will have to invest in 5 year FD. By investing in this scheme you can save Rs 1.5 lakh in your total taxable income.

Generally, tax benefit is not available on fixed deposits. The reason for this is that the interest you earn from fixed deposits is added to your annual income. In such a situation, if your income comes under the ambit of tax, then you have to pay tax as per the slab. But tax can be saved by investing in a 5 year FD scheme.

This scheme is available in all banks and post offices.

5 year FD is known as tax saving FD. In this you get the benefit of Section 80C of the Income Tax Act. Under Section 80C, you can claim a deduction of Rs 1.5 lakh in the total taxable income.

The option of 5 year tax saving FD is available in all banks. Besides, you will easily get this option in the post office also. However, its interest rate may vary in different banks and post offices. In such a situation, you can invest in FD where you are getting better interest.

Disadvantages of breaking the FD scheme before 5 years: It

is your loss to break the five year FD scheme before maturity. By doing this you will not get tax benefit and will also have to pay penalty. If you break the FD before maturity, then in the year in which the FD is broken, the entire amount on which you have availed the benefit of income tax exemption will be added to your income. Apart from this, interest is also added to your income. After this, you will have to pay tax according to the income tax slab you fall in.

PF Withdrawal Limit: How much money PF account holders can withdraw in case of emergency, know the limit here

The post Income Tax Saving Scheme : Last chance to save tax! This scheme of the bank will be useful, you can save up to Rs 1.5 lakh first appeared on Rightsofemployees.com.