Every year we lose a chunk of our hard-earned money to the taxman. That too despite numerous tax saving options available for you to save tax. Often the reason for higher tax liability is delayed investments for tax saving. Most taxpayers do not even consider this seriously until the last quarter of the financial year, and no doubt they lag on the tax saving targets and end up paying more taxes. The solution is simple, start early, plan in the first month (i.e. April) and invest throughout the year without burdening yourselves. Here are the tax saving options and limits for the next assessment year
Life insurance plans:
- Term Life Insurance
Term plans give pure life insurance cover and do not have any savings/profit element. They are fundamentally the most simple, basic and cheap life insurance plan. It’s easy for the policyholder to decide whether to take a life cover compared to savings and endowment plans in the market. Following are the parameters on which term plans stand out
- Higher life cover
- Option to add Riders
- Affordable premiums
- Simple benefits
A ULIP plan is a good way to earn a high return over a long-term investment to fortify your retirement plan. This retirement strategy combines investment and insurance. It is a recommended way to participate in market linked returns yet securing your loved ones and getting tax free returns.
- Pension plan
A pension plan is a retirement instrument. It helps you build retirement kitty over a long term. The earlier you start saving in this plan the larger your kitty will be. At the end of the accumulation phase, you can use the kitty to buy an annuity plan which will give you a monthly income during your retirement years. This income however is taxable.
- Term Life Insurance
PPF, Senior Citizens, and NPS
Private Provident Fund or PPF is a long-term investment backed by the government of India that quenches your query of how to save tax. Deposits made at PPF accounts are entitled to tax deductions under Section 80C. PPF reports also offer additional tax advantages. Interests made from PPF residue are tax-free. PPF accounts provide you double exemption advantages, deduction deposits, tax-free yields and no wealth taxation.
National Pension Scheme is a long-term investment strategy for retirement under the Pension Fund Regulatory and Development Authority (PFRDA) and Central Government. Some of the NPS is invested in stocks, and as you might already know, equity investments do not offer guaranteed yields.
- Senior Citizen Saving Scheme
As a savings and investment item for your 60+-year- olds, the Old Citizen Saving Scheme is heaven-sent. The Elderly Citizens' Saving Scheme (SCSS) additionally offers tax advantages under Sec 80C and permits premature distributions.
Other Tax Saving Investments
ELSS stands for Equity Linked Savings Scheme. You can use all these are tax-saving mutual funds to conserve income tax around 1.5 lakh under Section 80C. ELSS funds possess a lock-in span of 3 decades and spend the vast majority of the portfolio at the stock exchange.
- Lock-in of 3 Decades
- Finest Alternative for medium-term wealth
- The choice to invest (SIP)
- No maximum limitation on investment
- 2x higher Rates of Interest compared to FD/PPF
- Health Insurance
As a responsible individual, you ought to make certain your family does not suffer should you deal with any disease or diagnosed using a life-threatening illness. In addition to the advantages of concerning policy, wellness insurance supplies some tax advantages that might work to your benefit. You can take various kinds of insurance policies like Medi-claim, Cancer, Heart, and Critical illness plans.
The amount you pay for your Medical Insurance coverage provides the following two advantages:
- Health insurance cover
- Tax advantages
Future Generali helps you to reduce your Tax amount with tools like Tax Hacks. You can explore and learn the new tactics of tax savings and Insurance plans for your family.
To sum up, you probably won’t want to lose your hard-earned money easily. So why don’t you save with us? The next time you are any of your peers want to know how to save tax; we will be there to assist you. With us, you get a variety of Term Insurances, Health Insurances, PPFs, ULIP plan, ELSS and a lot more Tax saving schemes from Future Generali to secure your future!
Secure your family’s financial future @ Rs.20* per day with Future Generali Flexi Online Term Plan!