Rajkot Updates News Tax Saving Pf Fd and Insurance Tax Relief Learn About the Math of Tax Relief in 2022 : With the commencement of the Income Tax Return (ITR) filing season, the salaried class should also start planning to save tax. Along with coming into the salary account, some special things of investment are kept in mind, then it can not only save tax, but can also prepare a good fund for retirement. Let us know about 5 such tax saving options, where you can create a retirement fund along with saving tax.
1. Tax Exemption on PPF, LIC Premium
PPF Public Provident (PPF) is one of the best tax saving option. In this investment along with maturity amount and interest is also tax free. This is a better way to make a safe investment and a large fund in the long term. Tax deduction is available under section 80C on investment in PPF account. On the other hand, if you have taken a policy of LIC, then you can claim tax deduction on its premium. In 80C, tax exemption can be taken up to a maximum of Rs 1.50 lakh.
2. Tax Exemption on EPF
Employees’ Provident Fund (EPF) is one of the easiest tax saving options for salaried people. In this also tax exemption is available under 80C. EPF is managed by the Central Board of Trustees. Keep in mind here that the interest earned in the PF account is tax free up to Rs 2.5 lakh annually. This is a better option to build a retirement fund.
3. Tax Exemption on ELSS
You will get the benefit of tax deduction under section 80C on investment in Equity Linked Savings Scheme (ELSS) of Mutual Funds. There is tax saving with better returns on ELSS. This is the reason why ELSS is a better tax saving option for salaried individuals due to the double benefit.
4. Tax Exemption on Tax Savings FDs
Tax saving fixed deposit is also a good option to save tax for the salary earners. This is such an FD, in which you can save tax up to Rs 1.5 lakh. It has a lock-in period of 5 years. This is a safe tax saving option for the salaried class. Know here that the return received on maturity of tax saving FD is taxable.
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5. Tax Exemption on NPS
National Pension Scheme (NPS) can be availed of tax exemption under section 80CCE up to the limit of 1.5 lakhs. Apart from this, in NPS, you get an additional exemption of Rs 50,000 under section 80 CCD (1B). NPS is a good long term tax saving option for the salaried class. It is also a better scheme for retirement.