Rajkotupdates.News : Tax Saving PF FD and Insurance Tax Relief

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Rajkotupdates.News : Tax Saving PF FD and Insurance Tax Relief

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Rajkotupdates.News : Tax Saving PF FD and Insurance Tax Relief

Rajkotupdates.News : Tax Saving PF FD and Insurance Tax Relief

Tax saving PF FD and insurance tax relief are some of the popular ways to save tax in India. Here are the details of each scheme:

  • Tax saving PF: The Employees’ Provident Fund (EPF) is a retirement savings scheme that is mandatory for all salaried employees. The employer and the employee contribute 12% of the employee’s basic salary and dearness allowance to the EPF account. The interest earned on the EPF balance is tax-free.
  • Tax saving FD: A tax saving fixed deposit (FD) is a fixed deposit that offers tax benefits under Section 80C of the Income Tax Act. You can claim a deduction of up to Rs. 1.5 lakh on the amount invested in a tax saving FD. The lock-in period for a tax saving FD is typically 5 years.
  • Insurance tax relief: There are several insurance products that offer tax benefits. Some of the popular ones are:
    • Life insurance: The premium paid for a life insurance policy is eligible for a deduction under Section 80C of the Income Tax Act. The maximum deduction is Rs. 1.5 lakh.
    • Health insurance: The premium paid for a health insurance policy is eligible for a deduction under Section 80D of the Income Tax Act. The maximum deduction is Rs. 25,000 for self and Rs. 50,000 for parents.
    • Medical reimbursement insurance: The premium paid for a medical reimbursement insurance policy is eligible for a deduction under Section 80D of the Income Tax Act. The maximum deduction is Rs. 25,000.

These are just some of the popular ways to save tax in India. There are many other schemes available, so it is important to do your research and choose the ones that are right for you.

Here are some additional tips for saving tax in India:

  • Invest in ELSS funds: Equity linked savings schemes (ELSS) are mutual funds that invest in equity markets. The returns from ELSS funds are tax-free after a lock-in period of 3 years.
  • Invest in PPF: The Public Provident Fund (PPF) is a long-term savings scheme that offers tax benefits under Section 80C of the Income Tax Act. The interest earned on the PPF balance is tax-free.
  • Invest in NPS: The National Pension System (NPS) is a retirement savings scheme that offers tax benefits under Section 80C of the Income Tax Act. The returns from NPS are tax-free after the age of 60.

It is important to consult with a tax advisor to get personalized advice on how to save tax in India.

Importnat Link

Direct Link to Check Pf Balance CheckClick Here
Home PageClick Here

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