How to save income tax: Want to save up to Rs 46,800? Here is a method and step by step guide for tax-saving

How to save income tax: Are you a salaried person who needs to submit investment proofs at your organization? Did you know that you can save up to INR 46,800* just by investing in tax-saving mutual funds? Digital payments platform, PhonePe, provides an option to invest in industry-leading tax-saving mutual funds. 

What makes these tax-saving mutual funds attractive for taxpayers is the shortest lock-in period of just three years. Based on the past performance, these funds provide higher returns compared to fixed deposits (FD) and Public Provident Fund (PPF). PhonePe has partnered with mutual fund players such as Axis, Aditya Birla Sun Life, DSP, Tata, SBI, and ICICI Prudential for offering these tax-saving funds. 

Here, we look at a step-by-step guide to help reduce tax by investing in leading tax-saving mutual funds on the PhonePe app:-

Step 1: Open the PhonePe app and click on the ‘My Money’ section at the bottom of the homepage

Step 2: Click on ‘See all’ under the Investments category and then on ‘Tax-Saving Funds’ under high growth products

Step 3: Select the tax-saving fund you wish to invest in and click on ‘Continue’

Step 4: Enter investment amount, choose an investment type (either one-time or monthly SIP) and click on ‘Invest Now’

Step 5: Select the bank account from which you wish to invest and click on ‘Pay’ to complete the transaction. 

Step 6: Congratulations! Sit back & relax as you’ve both invested and reduced your tax liability 

(*The saving of INR 46,800 is for investors with a net taxable income of above INR 10 Lakhs but below INR 50 lakhs assuming the investor is in the 30% tax bracket (as per old tax regime) and includes 4% cess.)