Tax-Saving Tips for better for Investors for this fiscal year
Posted on: 09/Apr/2018 12:20:10 PM
Government provides many tax saving investment options for the Investors to save their money and also to obtain a better return on their specific investments. Into the new fiscal year the details and categories for the Personal Finance options for the Investors will help them to choose where to invest for the savings.
Public Provident Fund
Public Provident Fund (PPF) currently offers 7.6 percent interest returns. This scheme works under the Section 80C and provides the tax free withdrawal. PPF is a long term investment with a tenure of 15 years and can also be extended for another five years on special request. The money can be accessed in between on special conditions but this scheme has a high scope for long term investments only.
Tax-Saving Mutual Funds
This option can be availed based on the existing allocation of a portfolio. The amount of equity should be recognized beforehand and then the Equity Linked Savings Schemes (ELSS) will be effective. For a three-year lock scheme it is a better option to get the investment returns over short period of time.
National Pension System
National Pension System (NPS) comes under the contributory form of investment that provides annuity after the age of sixty. It works under the section 80C up to Rs1.5 Lakh and under Section 80CCD (1B) for another 50,000 INR.
Preference shares
Investing on the preference shares of Companies in the market can provide a 10 Lakh INR tax free dividend option. The returns are based on the market yield on taxable instruments and completely depends on the choice of the companies determining the dividend rate.
