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For entrepreneurs, organizations and even for individuals who are depend for their bread and butter or on any other source of income, tax planning is the most crucial thing to consider. For them, focusing on the crucial tax saving schemes is crucial with easy returns with the best plans to invest money in some fruitful schemes. In the beginning of the financial year, everyone looks for the right options to make some good options to save more. If you do so, you are paving smoothen ways to save more on paying unwanted taxes; while getting a better option of year-long returns on your investment – the tax saving investment.

In majority of cases, it is noticed that people hardly get success in saving more on tax due to lack of information and knowledge. They are found struggling in fitting the best suited choice in your investment planning. Keeping the same concern in mind, The Frames has come up with the tax saving options that are based on the financial expert’s advice. For your convenience and to help you save more on the tax, we have come up with some of the key options.

1. Unit Linked Insurance Plan or ULIP – The Crucial Investment Plan
ULIP is the right way ensuring your family is financially balanced in case of any mishap or casualty occurs. Choose the right life insurance policy and you will avail benefits under the Income Tax Act – Section 80C of the Income Tax act 1961. According to the Section 10 (10D), maturity of the policy is tax free. You can claim 20% of tax deduction on the premium paid.



2. Equity Linked Saving Schemes – Mutual Funds Schemes
ELSS or Equity Linked Saving Schemes are mutual fund investment schemes – invest a large percentage of the portfolio in equity. However, they are offered as mandatory lock-in period for three years – the shortest among all the investment products. The deductions are qualified through Section 80C of the Income Tax Act. SIP and other investments are allowed to qualify for the deduction.

3. Public Provident Fund or PPF
Being all time favorite tax saving scheme, PPF is under the category of exempt-exempt-Exempt tax status. You can start your PPF account with a bank or post office. You can claim a deduction under Section 80C of the income tax act for the amount invested during the financial year. You are eligible to get deduction of 1.5 Lakhs.

4. Sukanya Samridhi Yojna or SSY
In the last couple of years, it become the most important tax saving schemes – launched in the year of 2015 as part of the Beti Bachao Beti Padhao Campaign. This scheme is all about fixed income investment through which you can invest regular deposits and earn interest on it. The scheme qualifies as an eligible deduction under Section 80C of the income tax act. There are certain terms and conditions required to follow under this scheme.

5. National Saving Certificate
It is an initiative of Government of India – a fixed income investment scheme for small and mid-size income investors to invest and earn handsome returns. It is a low-risk investment and secure like Provident Fund or PF. Investment qualifies for deduction Under Section 80C of the IT Act up to Rs 1.50 Lakhs. It is also the right way for complete capital protection and guaranteed interest. There are varied plus points under this tax saving scheme like claiming a tax benefit under 80C up to Rs 1.5L, invest as low as INR 1000, 6.8% annual interest as guaranteed returns and a lot more.

6. FD or Fixed Deposit with Tax Saving Options
FD or Fixed Deposit is one of the safest tax saving schemes – counted as safer than equity investment in terms of risk and returns. There are varied features of tax saving fixed deposits like a minimum lock-in period of 5 years, eligibility for deduction under section 80C at the time of calculating the taxable income. Senior citizen can get a highest interest rate on investment.

7. Senior Citizen Savings Schemes
A senior citizen savings scheme is income tax saving scheme that is for senior citizens of India. You can do investment through post office, bank and other financial schemes and get highest rates of interest along with tax saving scheme.

8. School Tuition Fees
According to the old tax regime and income tax act 1961, you can get deduction under Section 80C of the Income Tax act for payment for school fees for children. The tuition fee that is paid  to registered University, college, school or educational institution qualifies for deduction up to Rs 1.5 Lakhs. Donation and development fee is not allowed under this section.

9. NPS or National Pension Scheme
It has also become the popular option to save on taxes. It is for both government and private employees – enabling depositor to build a corpus for their retirement along with a regular monthly income.

10. Health Insurance under Section 80D
You can also claim a tax benefit up to Rs 25,000 in respect of premium paid to keep in force health insurance covering self, spouse or dependent children and any contribution to central health government scheme. You can also save through schemes – notified by the central government as eligible for deduction.

Are There Other Options to Save More on Income Tax? 
Apart from the aforementioned tax saving options under old and new regime, you can also stay relaxed and save more through other options like:

  • Repayment of Education Loan – Deduction under Section 80E of the Act  
  • Rent Paid and No HRA Received – a tax Benefit under Section 80GG 
  • Savings Bank Account Interest –deduction under section 80TTA  
  • Interest Paid on Home Loan  
  • Medical Expenses towards Disabled Dependent – As per the provisions of section 80DD 
  • Treatment of Specified Diseases under Section 80DDB 
  • Donations Made to Charitable Institutions  

It will be better to consult with a tax advisor or a consultant who can guide you to save more on the tax in the current financial year. You will surely get the right options and a better chance to stay worry-free.

Read about The Best Investment Plans for the Financial Year 2023-24

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TheFrames Team

TheFrames Team has versatile authors to write articles on any topic. They are continuously putting their efforts to put various Series on the website. They put 3-4 articles under each series.

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