NPS, EPF, PPF: 5 ways you can save tax this year if you missed it last year
Income Tax Filing: The deadline for filing ITR for FY 2023-24 has passed and the refund process has started. For those who have not filed their taxes yet can still submit a belated ITR till December 31.
Income Tax Filing
However, there are some people who have filed their returns but feel that they have missed out on tax-saving opportunities. If you are one of those with similar sentiments then now is the time to start planning. Here are some strategies that can help you save tax as well as generate good returns.
Public Provident Fund (PPF)
A PPF account is a safe investment option with a 15-year term, available to any Indian citizen. Currently offering an interest rate of 7.1 per cent, it falls under the EEE category, meaning your investments, interest, and maturity proceeds are all tax-free.
Public Provident Fund (PPF)
This makes PPF a great option for tax savings at every stage—investment, interest earned, and maturity.
National Pension Scheme (NPS)
NPS is a long-term investment plan designed to provide a substantial retirement fund. Upon retirement, you receive a lump sum, along with a monthly pension based on your annuity and its performance.
National Pension Scheme (NPS)
Investing in NPS offers three benefits: building a retirement corpus, receiving regular post-retirement income, and enjoying an additional tax deduction of up to Rs 50,000 under Section 80CCD (1B).
Health Insurance
Health insurance is essential today, providing financial security for you and your family. Additionally, you can claim a deduction under Section 80D for the premiums paid on your health insurance policy, offering further tax savings.
Home Loan Interest
If you're planning to buy a home, taking a home loan can be a beneficial investment. You can claim tax exemptions on both the principal and the interest components of your home loan.
Home Loan Interest
Under Section 80C, you can deduct up to Rs 1.5 lakh annually on the principal amount, and under Section 24, you can claim a deduction of up to Rs 2 lakh on the interest paid.
Employment Provident Fund (EPF)
For salaried individuals, a portion of your salary goes into your EPF account. Under Section 80C, you can claim a tax deduction of up to Rs 1.5 lakh annually on your EPF contributions, making it another effective tax-saving tool.