Income tax is something we wish to diminish to the maximum.we can do so by tax saving investments deduction under section 80C.
Following are some plans u can choose to reduce the income tax:
1.PPF ( Public Provident Fund )
PPF Scheme is most traditional retirement planning investment.The maximum amount required as an investment in the scheme is Rs 1.5lakhs.Interest Income funds and the amount received on maturity on PPF scheme are both tax free.
2.FD ( Fixed Deposits )
FD is another most preferred plan for tax saving investment.The rate of interest varies from one bank and postoffice to other.
maximum exemption allowed is Rs 1.5 lakh for minimum duration of 5years.the tax is charged on interest earned and maturity.
3.ELSS ( Equity Linked Saving Scheme )
It is a common asset which goes under ambit of tax saving investment
.In the minimum period of 3years this investment scheme provides the exemption of Rs 1.5lakh in a financial year end.The interest rate depends upon the performance of the scheme in a given year and the maturity amount is tax free.
4.NSC( National Saving Certificate)
it is the tax saving investment scheme which is introduced by the indian post office
.it has a lock of 5years in a period.They offer guaranteed tax free return till maturity return but they charge tax on the interest earned.
5.EPF(Employee Provident Fund)
this scheme enables to save a minimum amount of Rs 1.5lakh.The employee salary is deducted by 12% and the same is contributed by the employer.The maturity is tax free.
It is the most popular and preferred tax saving investment scheme under income tax return Act scheme of 80C.In the financial year,the maximum deduction of Rs 1.5lakh is allowed.the amount received at maturity or in case of death is not taxable.the term life insurance itself says life assurance.