Tax-saving options available to Taxpayers

legitimate tax-saving options available to taxpayers in India

Investment in Tax-Saving Mutual Funds (ELSS): Equity-Linked Saving Schemes (ELSS) are mutual funds that offer tax benefits under Section 80C of the Income Tax Act. These funds invest primarily in equities, and have a lock-in period of three years.

Public Provident Fund (PPF): PPF is a long-term savings scheme offered by the government of India, which offers tax benefits under Section 80C. The investment in PPF has a lock-in period of 15 years, and the interest earned on the investment is tax-free.

National Pension System (NPS): NPS is a retirement savings scheme offered by the government of India, which offers tax benefits under Section 80CCD. The investment in NPS has a lock-in period until the age of 60, and a part of the investment is tax-free.

Unit Linked Insurance Plan (ULIP): ULIPs are insurance plans that offer investment options, which provide tax benefits under Section 80C. The investment in ULIP has a lock-in period of five years.

Home Loan Repayment: The repayment of the principal amount on a home loan is eligible for a tax deduction of up to Rs. 1.5 lakh under Section 80C, while the interest paid on a home loan is eligible for a tax deduction of up to Rs. 2 lakh under Section 24.

It is recommended that taxpayers consult with a tax professional to determine which tax-saving options are best suited to their individual needs and circumstances.