How can I invest to save tax?

Where can I invest my money to save tax?

The easy tax saving investments that should be known by all the taxpayers of India are:

  • 5 years Bank Fixed Deposit.
  • Public Provident Fund (PPF)
  • National Savings Certificate (NSC)
  • Equity Linked Saving Schemes (ELSS)
  • Unit Linked Investment Plan (ULIP)
  • National Pension Scheme.
  • Life Insurance.

How much should I invest to save tax?

Thus, you can save tax by investing up to Rs 2 lakh in a financial year -Rs 1.5 lakh under section 80C and Rs 50,000 under Section 80CCD(1b). This deduction is available on the employer’s contribution to an employee’s Tier-I NPS account.

What is the best way to invest tax free?

Below are seven important tax-efficient investments you can incorporate in your portfolio.

  1. Municipal Bonds. …
  2. Tax-Exempt Mutual Funds. …
  3. Tax-Exempt Exchange-Traded Funds (ETFs) …
  4. Indexed Universal Life (IUL) Insurance. …
  5. Roth IRAs and Roth 401(k)s. …
  6. Health Savings Accounts (HSAs) …
  7. 529 College Savings Plans.

How can I pay less income tax?

How to Reduce Taxable Income

  1. Contribute significant amounts to retirement savings plans.
  2. Participate in employer sponsored savings accounts for child care and healthcare.
  3. Pay attention to tax credits like the child tax credit and the retirement savings contributions credit.
  4. Tax-loss harvest investments.
THIS IS INTERESTING:  How can I invest 50k in Nigeria?

What income is tax free?

As per interim budget 2019, Individual taxpayers having taxable annual income up to Rs. 5 lakh will get full tax rebate u/s 87A and therefore will not be required to pay any income tax. However Income tax Slabs and Rates will remain unchanged for the FY2019-20.

How can I save tax on 12 lakhs?

Tax Deductions under Section 80(C)

  1. Investments in PPF (Public Provident Fund)
  2. Investments in EPF (Employee Provident Fund)
  3. Investments in ELSS funds (Equity-Linked Savings Scheme)
  4. Investments in NSC (National Savings Certificates)
  5. Payment of premiums against Life Insurance Policies.

How can I save tax if I earn 20 lakh?

Tax Exempted Salary Components

  1. Meal Coupons.
  2. Car Maintenance.
  3. EPF (Contribution by Employer)
  4. NPS (Contribution by Employer)
  5. Gift voucher.
  6. Mobile Phone and the Internet Bill Reimbursement.
  7. Newspaper/Journal Allowance.
  8. Children Education/Hostel Allowance.

How can I save tax on 15 lakhs?

If you invest up to 1.5 lakh: If you have invested in Public Provident Fund, Employees Provident Fund, Sukanya Samriddhi Scheme, life insurance or health insurance premium, tax-saving fixed deposits from banks or post offices or any other provisions that allow tax exemption to the tune of Rs 1.5 lakh, you would still …

How much should I invest to save tax on 10000?

For the current financial year, i.e., FY2018-19 for every Rs 10,000 invested in instruments specified under Section 80C, you are likely to save Rs 520 (inclusive of cess) for the income tax slab rate of 5 per cent.

How can I save tax under 80C?

80C allows deduction for investment made in PPF , EPF, LIC premium , Equity linked saving scheme, principal amount payment towards home loan, stamp duty and registration charges for purchase of property, Sukanya smriddhi yojana (SSY) , National saving certificate (NSC) , Senior citizen savings scheme (SCSS), ULIP, tax …

THIS IS INTERESTING:  Best answer: What is dividend and profit?

What is the tax for 7 lakhs?

New income tax slabs for individuals for FY 2020-21

Income Tax Slab Tax Rate
From Rs.5,00,001 to Rs.7,50,000 10% of the total income that is more than Rs.5 lakh + 4% cess
From Rs.7,50,001 to Rs.10,00,000 15% of the total income that is more than Rs.7.5 lakh + 4% cess