What investments give tax free income to investors?
Table of Contents
What investments give tax free income to investors?
Public Provident Fund
Listed below are tax free investments that meet a variety of needs and financial goals:
| Sr No. | Best Tax Free Investments | Tax Benefits |
|---|---|---|
| 2. | PPF (Public Provident Fund) | Under Section 80C and Section 10(D) |
| 3. | NPS (New Pension Scheme) | Under Section 80CCD |
| 4. | Pension | Under Section 80CCC |
| 5. | Life Insurance | Under Section 80C |
How can I save my 46800 tax?
An equity-linked savings scheme or ELSS is a tax-saving investment under Section 80C of the Income Tax Act, 1961. By investing in ELSS, you can claim a tax rebate of up to Rs 1,50,000 a year and save up to Rs 46,800 a year in taxes. An ELSS is the only kind of mutual fund eligible for tax benefits under Section 80C.
What is the tax on 30 lakhs in India?
Tax rate for individuals (below 60 years) and HUFs:
| Tax Slabs | Tax Rates |
|---|---|
| Income up to Rs.2.5 lakhs | NIL |
| Income between Rs.2.5 lakhs and Rs.5 lakhs | 10\% of amount exceeding Rs.2.5 lakhs |
| Income between Rs.5 lakhs to Rs.10 lakhs | 20\% of amount exceeding Rs.5 lakhs |
| Income above Rs.10 lakhs | 30\% of amount exceeding Rs.10 lakhs |
What are the best tax saving investments U/s 80C?
Most tax payers even after using all the tax saving sections would be able to claim tax benefit up to Rs 6 to 6.5 Lakhs. Section 80C/80CCC/80CCD: Investment in EPF, ELSS, PPF, FD, NPS, NSC, Pension Plans, Life Insurance, SCSS, SSA and NPS. Also includes Home Loan Principal repayment, Tuition Fees, Stamp Duty ( Best Tax Saving Investments u/s 80C)
How to save income tax by investing in health insurance?
You can also save income tax by taking insurance for your own health or the health of any of your relatives. As per the Income Tax Act, deductions are available for such kind of expenditures. Each of these sections has a different amount of deductions, which only depends on the type of policy that you are investing in.
How to save income tax under Section 80D?
#2 Saving tax under the Sections 80D, Section 80DD, Section 80DDB You can also save income tax by taking insurance for your own health or the health of any of your relatives. As per the Income Tax Act, deductions are available for such kind of expenditures.
What are the tax exemptions available for investments?
The table below gives the details of all the tax exemptions available: Maximum Tax Exemption Limit (Rs.) Investment in EPF, ELSS, PPF, FD, NPS, NSC, Pension Plans, Life Insurance, SCSS, SSA and NPS. Also includes Home Loan Principal repayment, Tuition Fees, Stamp Duty. Best Tax Saving Investments u/s 80C