What are the investment schemes where investors can save taxes?
An investor can save taxes by investing under the following sections of the Income Tax Act, 1961:
v Section 80C (Investment avenues are discussed below in detail)
v Section 80D (Health insurance premium etc)
v Section 80E (Educational loan)
v Section 80G (Donation to specified institutions)
v Section 80U (Deduction for handicapped people)
v Section 24 (Housing loan interest)
Under Section 80C tax deduction an individual could invest up to a maximum limit of Rs 1 lakh in one or more of the following options put together:
v PPF (Public Provident Fund): Under this scheme the maximum investment permissible in a financial year is Rs 100,000
v EPF (Employees Provident Fund)
v Life Insurance Premium
v Pension Plan premium (under Sec 80CCC)
v ULIP
v ELSS (Equity linked saving scheme)
v NSC (National Savings Certificate)
v 5-year bank fixed deposit
v 5-year post office time deposit
v Infrastructure bonds / NABARD rural bonds
v NPS (New Pension Scheme) under Sec 80CCD
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