Tax savings come into the picture after you have estimated the total tax payable. Planning starts from the first estimation onwards, if the total amount can be saved with the help of investments. If you’re smart saver, your taxable income and taxes will be at the tip of your fingers.
The Govt. has already floated many tax saving investment options in the market. These tax savers will not only facilitate tax savings but also provide a regular source of savings. People generally get stuck with section 80C tax savings. Very few times, they realize the importance of other tax saving investments under different sections, if put aside in a prudent manner. Below mentioned are some top tax saving investments other than section 80C
Read More: Virtues of Tax Saver Investment
National Pension System (NPS): The National Pension System was launched in the year 2009 by the Govt of India. A designated PRAN (Permanent Retirement Account Number) will provided after a unique account is opened with Central Record keeping Agency (CRA). National Pension System offers tax savings up to Rs. 50,000 under subsection 80CCD (1B). This will be beyond prescribed deduction of Rs. 1.5 lakh available under section 80C of the IT Act, 1961. The instrument will be fully dependent on your choice.
Rajiv Gandhi Equity Savings Scheme: (Section 80CG) Under this scheme, individuals can invest up to Rs 50,000 in the listed stocks. The tax benefits are available under section 80CG. However, only the first time investors can invest in this particular scheme for more and more benefits. A scheme has its own set of risks, depending on the stock market results. The scheme, however, was never launched and was put off for really long.
Interest on Education Loan (Section 80E): Here, deduction is allowed only on the interest repayment bit, not the principle amount of the education loan at all. That implies only interest is eligible for saving taxes and filing ITR. This will be beyond the 80C limit and no particular limit is defined. Unfortunately, not many are aware of this scheme and usually skip it while calculating their tax saving portion.
Plans under section 80C are quite celebrated, however other investment schemes are still not known to all. One needs to indulge into extensive research for greater findings and awareness.