If planning your finances was difficult in the last year, then it’s still not that late. Set your things in order and opt for the best saving plans. Finances should be the first aspect of your life that needs control and planning. Investment in tax-saving schemes is intelligent for a brighter way ahead.
Today, all working people choose investment options that will save taxes and generate considerable investment options. A quick look at all the available plans for enhanced planning & financial management:
1. ELSS Tax Saving Mutual Funds
Equity Linked Saving Schemes offer tax benefits under Section 8C of the Income Tax Act. They are quite known for the returns it offers in the end. An open-ended Mutual Funds that has no fixed percentage of returns and can change between 12-18%. Due to the volatility and maximization of returns, the lock in is for about 3 years.
2. Public Provident Fund (PPF):
Interest earned on Public Provident Fund is not taxed. All the deposits done towards a PPF account can be claimed as tax deduction. The interest rate is around 7.8% annually. The interest rate changes every year and with a lock in period of 15 odd years. A PPF can be opened in an authorized bank or authorized post offices.
3. Sukanya Samriddhi Yojana Account (SSY) For Girl Children:
Sukanya Samriddhi Yojana Account is essentially a scheme focused towards a girl child. It is basically about their higher education. The idea is to improve the condition of a girl child. The interest rate here is 8.6%.
Once the girl turns 21 years of age, the SSY account can be conveniently closed only with consent.
4. New Pension Scheme (NPS):
The New Pension Scheme helps to save the taxable bit of the customer. This plays a deduction under Section 80C.This is a retirement plan for the unorganized sector. Investors can divide investments between equity, bonds, and gilts.
5. Senior Citizen Saving Schemes (SCSS):
This is the scheme for people above 60 years of age. This is obviously a long term investment option with assured returns. It’s available at designated banks and post offices. The returns can be yielded at about 8.6%.
Today, all tax saver plans are available online. This is not easier to research the best but also choose and invest in the best. These plans can easily turn favorable if equivalent risks are undertaken.