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Which plan is best for tax saving?

by Chase Collins

Which plan is best for tax saving?

Best Tax-Saving Investments Under Section 80C

Investment Returns Lock-in Period
ELSS Fund 15%-18% 3 years
National Pension Scheme (NPS) 12%-14% Till Retirement
Unit Linked Insurance Plan (ULIP) Returns vary from plan to plan 5 years
Public Provident Fund (PPF) 7%-8% 15 years

How can I save tax in 2021?

1,50,000 as per section 80C of the Income Tax Act….Provisions Under Section 80C:

Investment Returns Lock-in Period
Public Provident Fund (PPF) 7% to 8% 15 years
National Savings Certificate 7% to 8% 5 years
National Pension System (NPS) 12% to 14% Till Retirement
ELSS Funds 15% to 18% 3 years

What are the tax saving strategies?

6 Strategies to Protect Income From Taxes

  • Invest in Municipal Bonds.
  • Take Long-Term Capital Gains.
  • Start a Business.
  • Max Out Retirement Accounts and Employee Benefits.
  • Use an HSA.
  • Claim Tax Credits.

How can I save 50000 on taxes?

You can further save tax by investing additional Rs 50,000 in NPS. Do keep in mind that this deduction is available over and above the tax benefit available under section 80C. Thus, you can save tax by investing up to Rs 2 lakh in a financial year -Rs 1.5 lakh under section 80C and Rs 50,000 under Section 80CCD(1b).

What is maximum tax saving?

What is the Maximum Tax Saving That You Can Avail?

Deductions Max Amount (Rs.)
Standard deduction 50,000
Section 80C 150,000
Section 80CCD(1B) NPS 50,000
Section 80D 25,000

How can I lower my personal tax liability?

Key Takeaways

  1. The key to minimizing your tax liability is reducing the amount of your gross income that is subject to taxes.
  2. Putting pre-tax dollars into a retirement plan like a 401(k) is one easy way to reduce your taxable income for the year.

How much tax do I pay on 10 lakhs?

Income tax calculator for FY2021-22

Taxable income slabs Income tax rates and cess
Up to Rs 5 lakh Nil
Rs 5,00,001 to Rs 10,00,000 20% of (Total income minus Rs 5,00,000) + 4% cess
Rs 10,00,001 and above Rs 1,00,000 + 30% of (Total income minus Rs 10,00,000) + 4% cess

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