If you are looking for a risk free investment option to save tax, then you have come to the right place. Here are some tax saving schemes that provide protection against risk.
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Tax Saving Scheme: March is the time when investors tax planning Let’s start thinking about. In this month everyone wants to invest their money in those schemes which not only give good returns but also provide tax exemption. Section 80C of income tax is the most commonly used option to save tax as it allows investors a deduction of up to Rs 1.5 lakh, however there are many other tax-saving options available that can offer good returns but with higher risk come.
If you are looking for a risk free investment option to save tax, then you have come to the right place. Here are some tax saving schemes that provide protection against risk. Bank Tax Saver FD is a safe investment option that comes without any risk. Banks offer 5 year tax saver FD to their customers, which usually has a lock-in period of 5 years.
You can get tax exemption of up to Rs 1.5 lakh annually on deposits invested in bank FDs. Most public and private sector banks offer customers an interest rate ranging from 6.5 per cent to 7.5 per cent on tax saving FDs.
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Public Provident Fund (PPF)
Public Provident Fund (PPF) is a scheme run by the government that provides a risk-free tax saving option. You can invest an amount ranging from Rs 500 to Rs 1.5 lakh every year. The benefit of exemption up to Rs 1.5 lakh on the amount invested in PPF is available under Section 80C of Income Tax. The government is offering an interest rate of 7.1 per cent to the investors under this scheme. You can invest money in PPF for a total of 15 years.
national savings certificate
National Savings Certificate is another risk free tax saving option which offers investors a return of 7.00 per cent. Like PPF, investors also get a deduction of up to Rs 1.5 lakh under Section 80C of Income Tax. You can invest money in National Savings Certificate only for a total of 5 years.
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Voluntary Provident Fund (VPF)
Voluntary Provident Fund (VPF) is a small savings scheme of EPF under which investors can invest in VPF in addition to EPF. Through Voluntary Provident Fund, the employee can invest not more than 12 percent of his own. But in this they will not get the support of planning. In such a situation, the amount invested through VPF also gets an interest rate of 8.1 percent equal to EPF. Under VPF, investors get a deduction of Rs 1.5 lakh under Section 80C of Income Tax.
Sukanya Samriddhi Yojana
If you have a daughter below 10 years of age in your house, then by investing in Sukanya Samriddhi Yojana for her, you can get tax exemption as well as strong returns. SSY is a government scheme under which girls are given the option of investing up to Rs 1.5 lakh annually to become self-reliant. Under this scheme, an interest rate of 7.6 percent is available. Along with this, it is a great tax saving scheme, in which you get a risk-free exemption of up to Rs 1.5 lakh under Section 80C of Income Tax.
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These schemes provide a risk-free investment option to investors who are looking to save tax. By investing in these schemes, you can not only save tax but can also earn good returns on your investment.
