save taxes : In recent years, women’s investment participation has expanded dramatically. This suggests that in today’s world, women are increasingly interested in managing their finances. In India, there are many tax-advantaged investment opportunities. Most investors seek out such choices in order to save money on taxes. Some of these possibilities are available to both men and women, while others are specifically for retirees.
Today, we information Best save taxes Investment Options available to women.
Sukanya Samriddhi Yojana
Working women can save money on taxes by taking advantage of the government’s Sukanya Samriddhi Yojana. It is also known as SSY for short. SSY is an investment option that encourages parents to fund their daughter’s education and marriage. If your daughter is under the age of ten, she is eligible for this program.
This government program is classified as an EEE (exempt-exempt-exempt) tax. This means that the investor will not have to pay any taxes on the investment, income, or withdrawal. This exemption is provided for by Section 10 (11A) of the Income Tax Act of 1961. The amount invested in this scheme qualifies for a deduction under Section 80C, with a ceiling of Rs 1.5 lakh.
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National savings certificate
Section 80C of the Income Tax Act allows for a deduction for investments in National Savings Certificates. The maximum deduction claim is Rs 1.5 lakh. This scheme, offered in post offices, currently provides a fixed return of 7.7% with a minimum investment of Rs 1,000. The interest rate on this program is revised periodically.
Public Provident Fund (PPF)
Every fiscal year, you can deposit between Rs 500 and Rs 1.5 lakh under this arrangement. Women who want to reduce taxes while also earning significant profits should consider investing in the Public Provident Fund. The Finance Ministry has fixed the annual interest rate on the Public Provident Fund (PPF) at 7.10% until the third quarter of fiscal year 2025.
The interest and withdrawal of funds deposited in a PPF account are tax-free, and tax benefits can be claimed under Section 80C. PPF accounts have a 15-year maturity term. However, this time span can be extended in 5-year increments.
Insurance
Insurance not only protects you in bad times, but it is also a fantastic way to reduce taxes. Women investors can also receive tax breaks on life insurance contracts. Deductions can be claimed for policies purchased for yourself, your spouse, and children. However, no deduction can be claimed for more than 10% of the entire sum insured.
According to Section 80U of the Income Tax Act, this restriction is 15% of the entire sum covered for people with specific conditions. You can claim a deduction on your family’s health insurance premium. This allows you to deduct premiums for yourself, your spouse, children, and parents.
Equity-linked Savings Scheme
Section 80C of the Income Tax Act grants tax breaks for equity-linked savings plans. This option carries a significant risk because the returns are market-linked. The equity-linked savings scheme (ELSS) has a three-year lock-in period. Given this, this option is ideal for ladies with a strong risk-taking ability.
Employee Provident Fund
Investments of up to Rs 1.50 lakh in EPF (Employee Provident Fund) in a fiscal year are eligible for tax benefits under Section 80C of the Income Tax Act.
The National Pension System (NPS)
In addition to the Rs 1.5 lakh deduction permitted under Section 80C, NPS subscribers can deduct up to Rs 50,000 in NPS investments under sub-section 80CCD (1B). This allows them to save tax on a Rs 2 lakh investment.
Fixed deposit that saves you taxes
Banks and post offices provide a tax benefit under Section 80C for fixed deposits with a minimum lock-in term of five years. The tax deduction maximum is Rs 1.5 lakh per year, however the income from the investment is taxable.
Home loan
A tax deduction of up to Rs 1.5 lakh per financial year is available under Section 80C of the Income Tax Act for repayment of the principal amount of a home loan. Section 24(b) of the Income Tax Act also allows you to claim a tax deduction of up to Rs 2 lakh on house loan interest.
Senior Citizen Savings Program
Senior Citizen Savings Scheme (SCSS) investments are also eligible for a tax deduction under Section 80C.
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