1- Employees Provident Fund
Employees’ Provident Fund ie EPF gives higher returns than other investments, that too with a guarantee. Recently, its returns have been cut, after which it has come down to 8.1 percent, but it is still the highest. Till now, the return on EPF was 8.5 percent. Investment in EPF also gets tax exemption under 80C. However, only those people who are employed can invest in it. For this, you have to tell your company that you want to increase the contribution to EPF, because 12 percent from the company’s side and 12 percent EPF is deducted from your side. Along with this, invest in VPF as well, so that you can invest up to Rs 2.5 lakh in total every year and save tax on them.
2- Investing in PPF is a great option
This is a very good tool for tax planning. PPF account can be opened in bank and post office. A minimum of Rs 500 and a maximum of Rs 1.5 lakh can be invested in PPF every year. The maturity period of PPF is 15 years. The biggest advantage of opening a PPF account is that the deposits made, the interest earned and the money received on completion of the maturity period are exempt from tax on all three. The interest rate on PPF is 7.1 percent. This rate is fixed on a quarterly basis, which is subject to change.
3- Unit Linked Investment Plan
Unit Linked Investment Plans i.e. ULIPs are such investments, in which the benefit of insurance is also available. In this, you get tax exemption up to Rs 1.5 lakh under 80C. However, it needs to be noted that as per the budget announcements, if the annual premium under ULIP exceeds Rs 2.5 lakh, then that additional premium will be taxed. This would be the same as long-term capital gains above Rs 1 lakh are taxed at the rate of 10 per cent. If you are investing in ULIPs only for retirement, then you can choose a better option so that you get more tax benefits.
4- Atal Pension Yojana is of great use
In Atal Pension Yojana, not only can you be entitled to more pension every month by depositing less amount, but you can also get the benefit of it to your family in case of untimely death. The age of the person to take advantage of Atal Pension Yojana should be between 18 to 40 years. You have to pay very low premium for Atal Pension Yojana. If you are 18 years old and want to get a pension of Rs 1,000 every month, then only Rs 42 will have to be deposited in it every month. If the pension is to be taken Rs 5,000 a month, then a premium of Rs 210 will have to be deposited per month. If the amount will increase with age. You also get tax exemption under section 80C of the Income Tax Act on investment in this.
5- Money can also be invested in the National Pension Scheme
The National Pension Scheme is regulated by the Pension Fund Regulatory and Development Authority. You have to invest in this scheme till the age of 60 years. After this, you get an amount from the life insurance company out of 40 percent of the amount deposited every year, while you can withdraw the rest. There is no tax on the amount invested under NPS, but the annuity you get from it is definitely taxable.
6- Sukanya Samriddhi Yojana will improve the future of the daughter
In order to make the future of the girl child financially secure, the government had introduced Sukanya Samriddhi Yojana in 2015. Under this scheme, the account of a girl child below the age of 10 years can be opened, which is easily opened in the post office or any big bank. Although an account of a maximum of two girl children can be opened under the scheme, but in some special cases, an account of three girls can also be opened under the scheme. The Sukanya Samriddhi account can be opened with a minimum deposit of Rs 250 and in a financial year the minimum deposit has been fixed at Rs 250 and maximum Rs 1.5 lakh.
7- Know the benefits of Pradhan Mantri Vaya Vandana Yojana also
PMVVY (Pradhan Mantri Vay Vandana Scheme) is implemented through Life Insurance Corporation (LIC). In this, there is a scheme for citizens, under which monthly pension is available. Under this scheme, senior citizens get guaranteed pension at a fixed rate for 10 years. This scheme of Modi government can be availed through Life Insurance Corporation of India. It earns interest at the rate of 7.40 per cent per annum. This is the reason that so far about 6.28 lakh people have taken advantage of this scheme. This scheme is for senior citizens. To take advantage of this, the age should be at least 60 years and there is no maximum age limit. Yes, it is definitely that a person can invest a maximum of Rs 15 lakh under this scheme. People investing in this get a monthly pension of minimum Rs 1000 and maximum Rs 9,250.
8- Pradhan Mantri Jeevan Jyoti Bima Yojana will also benefit
Pradhan Mantri Jeevan Jyoti Bima Yojana is a term insurance plan. If the person dies after investing in it, then his family gets Rs 2 lakh. The Modi government started this scheme on 9 May 2015. If you want, you can take care of your family along with taking advantage of tax by investing money in it.
9- Money can also be invested in National Savings Certificate
National Savings Certificate i.e. NSC is such a tool, by investing in which your money not only increases, but you also get tax benefits. At the same time, the interest on investment made by the government in NSC is also very good. The best thing about it is that it is a government scheme, so your investment will be completely safe. To invest in this, you can go to any post office and invest. It has a maturity period of 5 years and the investment made in it can also get tax exemption up to Rs 1.5 lakh under 80C.
10- Sovereign gold bond will get cheaper gold
The Reserve Bank of India (RBI) issues Sovereign Gold Bonds on behalf of the Government of India. Gold bonds are issued by the Reserve Bank on a gram-wise basis. Investors can invest money in it and can redeem it after maturity. Please note that there is no making charge or purity charge on Sovereign Gold Bond. These bonds can be kept in demat account and TDS is not deducted on it.
also watch this video
RBI hikes repo rate by 0.50 percent, EMI will become expensive