As the financial year 2022-23 enters its final phase, discover safe investment options for tax saving.
Tax saving schemes: March is the time when investors start to think about tax planning. In this day and age, everyone wants to invest their money in schemes that not only offer good returns but also provide tax benefits. Section 80C of Income Tax is the most commonly used option for tax saving, as investors can get a discount of up to Rs 1.5 lakh. However, there are many other tax-saving options available that can offer strong returns but come with more risk.
If you're looking for a risk-free investment option for tax saving, then you've come to the right place. Let's discuss some schemes that offer protection from risk while providing tax-saving benefits.
Bank Tax Saver FD is a safe investment option that comes with no risks. Banks offer a 5-year tax saver FD to their customers, which usually has a lock-in period of 5 years. You can get a tax rebate of up to Rs 1.5 lakh annually on the deposits invested in it. Most government and private sector banks offer interest rates ranging from 6.5 per cent to 7.5 per cent to customers on tax-saving FDs.
Public Provident Fund (PPF) is a scheme run by the government that provides a risk-free tax-saving option. You can invest an amount ranging from Rs 500 to Rs 1.5 lakh every year. The benefit of exemption of up to Rs 1.5 lakh on the amount invested in PPF is available under Section 80C of Income Tax. The government is offering an interest rate of 7.1 per cent to the investors under this scheme. You can invest money in PPF for a total of 15 years.
National Savings Certificate is another risk-free tax-saving option that offers investors a return of 7.00 per cent. Like PPF, investors also get a rebate of up to Rs 1.5 lakh under Section 80C of Income Tax. You can invest in NSC for a total of 5 years.
Voluntary Provident Fund (VPF) is a small saving scheme of EPF under which investors can invest in VPF apart from EPF. Through the Voluntary Provident Fund, the employee can invest more than 12 per cent of his own. But in this he will not get the support of planning. In such a situation, the amount invested through VPF also gets the same interest rate of 8.1per cent as EPF. Under VPF, investors get a rebate of Rs 1.5 lakh under Section 80C of Income Tax.
If you have a girl child below 10 years of age in your house, then by investing in Sukanya Samriddhi Yojana scheme for her, you can get tax exemption as well as strong returns. SSY is a government scheme under which the girl child is given the option of investing up to Rs 1.5 lakh annually to become self-reliant. Under this scheme, 7.6 per cent interest rate is available. Along with this, it is a great tax saving scheme in which you get risk-free exemption of up to Rs 1.5 lakh under Section 80C of Income Tax.
These schemes offer a risk-free investment option to investors who are looking to save tax. By investing in these schemes, you can not only save on taxes but also earn good returns on your investment.
Read more: ITR filing last date on July 31: Which form should you fill out for your Income Tax Return?
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 "Tax Saver FD, Tax Saving Options, Tax Saving Tips, Public Provident Fund, National Savings Certificate, Voluntary Provident Fund")
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