Why you should choose your tax-saving options wisely

THE ECONOMIC TIMES Sat, Feb 29, 2020 | 11:58 AM IST Tax-saving guide

Why you should choose your tax saving options wisely Some tax saving instruments may not be suitable for young professionals. Here's why. Want a safe option to save tax and fund your retirement? Invest in PPF Since the Public Provident Fund (PPF) has a long tenure of 15 years, the impact of compounding is huge, especially in the later years. You can save over Rs 1 lakh in tax just via these 4 avenues The I-Tax Act, 1961 provides several avenues by way of deductions under different sections of the Act, to help one invest or make an expense to reduce the tax outgo. Check these 7 tax savers before you invest again It's always better to plan your tax saving investments in advance than make the wrong moves at the fag end of the financial year. ELSS Vs PPF Vs FD - What works for you? ELSS tax saving mutual funds have been getting traction in the past few years as individuals are becoming more aware. Here's a quick comparison of interest rates on tax-saving debt investments But before you get down to choosing a tax saving investment you should probably first calculate how much you need to invest to save tax. Senior Citizens Savings Scheme saves tax, beats bank FDs Backed by the government, the scheme offers capital protection, along with quarterly interest payment as a source of income. 4 expenses that can help you save tax under section 80C If you have incurred any of the below-mentioned expenses in the FY 2017-18, then you can claim deduction for it up to a maximum of Rs 1.5 lakh. Top five tax-saving bank FD rates To save tax, many people use this investment route as they are considered to be less risky compared to equities. 6 fixed income investments to help you save tax under section 80C Long-term debt investments should form a part of every investor's portfolio to maintain stability. However, investors should know that most long-term tax-saving debt investments have long lock-ins and, therefore, come with liquidity issues.

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