Which is best investment in 80C?

Which is best investment in 80C?

Best Tax Saving Investments Under 80C

• ELSS (Equity Linked Saving Scheme) Lock-In: 3 years. Returns: 15-18% (Based on the last 5 years)
• Public Provident Fund (PPF) Lock-In: 15 years. Return: 8%
• Bank FDs. Lock-In: 5 Years. Returns: 6-7%
• ULIPs. Lock-In: 5 Years (Minimum) Return: 11-13% (Last 5 years)

What are the investments eligible under 80C?

What are the investments eligible for deduction under 80C? PPF, NSC, NPS, Tax saver FDs, Post Office Term Deposit, ELSS, ULIP, Senior Citizens Savings Scheme, Sukanya Samridhi Account.13-Jan-2022

Does all SIP comes under 80C?

Which SIP is tax free under section 80c? 80C allows deduction upto Rs 1.5 lakh for investment made in ELSS (equity linked savings scheme). You can also start SIP for ELSS mutual funds for which deduction upto Rs 1.5 lakh will be available u/s 80C.

How can I save tax if I earn 15 lakh?

1. Reduce Your Taxable Income by Up To Rs 1.5 Lakhs (Section 80C, 80CCC, 80CCD)

• Unit Linked Insurance Plans (ULIPs)
• Pension or Annuity Plans from Life Insurance Companies.
• Public Provident Fund (PPF) & Employee Provident Fund (EPF)
• New Pension Scheme Tier-I Account.
• Senior Citizen Savings Scheme.

What if I invest more than 1.5 lakh in 80C?

No. Investments made under 80C investments are given a tax deduction (tax break). Under this section, you can invest a maximum of ₹1.5 lakh. However, if you make investments more than the said limit of ₹1.5 lakh, then you do not get any tax deduction on the amount over and above the limit.

Which SIP is best for tax saving?

List of Top Tax Saving Mutual Funds in India Ranked by Last 5 Year Returns

• Quant Tax Plan. EQUITY ELSS.
• Canara Robeco Equity Tax Saver Fund.
• Mirae Asset Tax Saver Fund.
• Kotak Tax Saver Fund.
• DSP Tax Saver Fund.
• Tata India Tax Savings Fund.
• UTI Long Term Equity Fund.
• ICICI Prudential Long Term Equity Fund (Tax Saving)

Which investment is best for tax exemption?

Best Tax-Saving Investments Under Section 80C

Where can I invest my money to save tax?

How do I reduce my taxable income?

• Contribute to a Retirement Account.
• Open a Health Savings Account.
• Check for Flexible Spending Accounts at Work.
• Use Your Side Hustle to Claim Business Deductions.
• Claim a Home Office Deduction.
• Rent Out Your Home for Business Meetings.
• Write Off Business Travel Expenses, Even While on Vacation.

How much tax do I pay on 10 lakhs?

Income tax slabs for new and old regime

How can I avoid paying tax on my salary?

15 Tips to Save Income Tax on Salary

• House Rent Allowance (HRA)
• Leave Travel Allowance (LTA)
• Employee Contribution to Provident Fund (PF)
• Standard Deduction.
• Professional Tax.
• Exemption of Leave Encashment.
• Exemption Under Section 89(1)
• Exemption from the Receipt Upon Opting for Voluntary Retirement.

Is SIP tax free?

SIPs can be one of the best tax-saving instruments with high returns on your investments. You can claim a deduction of up to Rs. 1.5 lakh from your taxable income for investing in ELSS through SIPs under Section 80(C) of The Income Tax Act, 1961.

How much we can show in 80C?

₹ 1.5 lakh per year

Is ELSS taxable after 3 years?

After the 3 year lock-in period, the investor has redeemed the ELSS at Rs 3 lakh where, as per the above criteria, Rs 1.5 lakh will be exempted from tax. Thus, taxable income after deduction of Rs 1.5 lakh from Rs 3 lakh equals Rs 1.5 lakh.12-Jan-2022

Is SIP better than PPF?

PPF is less liquid. You can only withdraw the investment amount after the 7th year from the date of opening your PPF account. SIPs are prone to a higher level of risk as they are influenced by equity market performance. PPF offers guaranteed returns and is, therefore, a safer investment option.30-Dec-2021

Which mutual fund is tax free?

a. ELSS funds are the only tax-saving funds within the Rs 1.5 lakh limit which has the additional advantage of giving equity-linked returns.

Which is better SIP or ELSS?

There is no difference between ELSS and SIP as such. ELSS funds have a lock-in period of at least three years. Meaning, you cannot withdraw your money for three years. If you invest in ELSS via SIP route, each investment will be locked in for a period of three years, from their respective investment date.25-Mar-2022

How can I save tax on 12 lakhs?

Tax Deductions under Section 80(C) Investments in PPF (Public Provident Fund) Investments in EPF (Employee Provident Fund) Investments in ELSS funds (Equity-Linked Savings Scheme) Investments in NSC (National Savings Certificates)09-Aug-2022

How can I save tax if I earn 20 lakh?

Donations - Section 80G of the Income Tax Act also allows you to avail tax saving on 20L income for making donations to charities, NGOs and government-backed relief funds. The amounts donated to such organizations are entirely exempted from tax. Others - Section 80TTA allows you to avail deduction up to Rs.

How do I get maximum tax exemption?

Tax Saving Schemes

• Public Provident Fund (PPF)
• Sukanya Samriddhi Yojana (SSY)
• National Pension System (NPS)
• Employees' Provident Fund (EPF)
• Sukanya Samriddhi Yojana Interest Rate.
• National Savings Certificate.
• House Rent Allowance.
• NSC Interest Rate.

What income is tax free?

If your income is below ₹2.5 lakh, you do not have to file Income Tax Returns (ITR).

Which is best investment in 80C?