Money tips: Smart ways to save Income tax at the last moment; save over Rs 2 lakh

Money tips: So, what is the right way to save income tax with a lump sum investment at the last moment. How can it be done online? What is an income tax rebate on your child and your's Public Provident Fund (PPF). How to get an income tax rebate of over Rs 1.5 lakhs. Today in Money Guru you will know how to save tax by making a lump sum investment. Zee Business Financial Expert Vikas Puri has some valuable money tips for investors.

Fixed Deposit
-- A very good alternative at then last minute tax planning
-- To get a  tax benefit, investment for a period of 5 years
-- No tax on interest and principle amount
-- tax only on an interest income of rs 10000 and above
-- You know the maturity amount at the time of investment
-- You can withdraw the amount even before maturity
-- Online option of opening FD account provided your KYC formalities with the bank are complete
-- Your bank account should have an updated PAN number
-- The amount after maturity comes into your account

PPF
-- You can invest a lump sum amount of Rs 1.5 lakhs
-- The maturity period is 15 years
-- Only one PPF account per person
-- You can open account of children below 10 years
-- The responsibility of the minor account remains with the guardian
-- Account can be opened via internet banking
-- Interest rate at 7.9% makes it a highly lucrative savings scheme

Sukanya Samriddhi Yojana
-- One time investment of Rs 1.5 lakh
-- Income tax benefits under Section 80 C
-- Account can be opened in the name of two daughters but the yearly limit cannot cross Rs 1.5 lakh
-- The account matures when your daughter turns 21 years
-- 50% income can be withdrawn after 18 years for your girl child's education or medical needs
-- Interest rate offered is 8.4%

National Pension System
-- Income tax rebate for investment upto Rs 1.5 lakh under section 80C
-- Under 80CCD(1b), additional rebate up to Rs 50000
-- Under 80CCD(2), 10% rebate on employer contribution
-- Two types of accounts - Tier 1 and Tier 2
-- Tier 1 is compulsory and non-withdrawal account. Not possible to withdraw money before retirement except partial withdrawal in certain situations
-- 60% income at the time of retirement is tax free
-- It is mandatory to take annuity plan with 40% amount

How to get the Rs 2 lakh rebate?
80C- PPF 1.5 lakh investment
80CCD(1)-NPS 50000 additional rebate
Total benefit - 1.5+50000= 2 lakh

How to get the Rs 2 lakh rebate?
80C- PPF- 1.5 lakh investment
80CCD(1)-NPS 50000 additional rebate
80CCD(2)-NPS 75000 (employer contribution)
Total benefit - 1.5+50000+75000 = 2.75 lakh

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Important tips for tax planning

-- Never take insurance to save tax
-- Avoid unnecessary investments
-- Start financial planning at the beginning of financial year
-- Always take professional advise