Investment Ideas: PPF, ELSS, Life Insurance and many other options are there in which you can take advantage of tax exemption by investing before March 31, 2020. Let us tell you how you can save tax. ,
Investment Ideas:Only a few days are left for the end of the financial year. In such a situation, if you want to do tax savings, then you still have many investment options. In which you can get tax exemption by investing money. By doing this, apart from saving tax, you will also get better returns and you will also be able to save. Here we discuss these investment schemes to get income tax exemption.
Here are some of the best tax saving plans that can help you maximize your savings and achieve financial security at the same time.
Unit-Linked Insurance Plans
ULIP (Unit-Linked Insurance Plan) is a type of insurance policy that combines the benefits of life insurance and investment. They offer a combination of risk coverage and investment opportunities, making them a popular option among many investors.
health insurance
Health insurance plan is as important as life insurance plan for future protection. Its advantages are that under section 80D of the Income Tax Act, health insurance policies are also eligible for substantial tax benefits. The best part is that this is in addition to the Act 80C limit of Rs 1.5 lakh, which bundles multiple tax saving instruments with a similar cap on tax-savings. You can also claim a tax-deduction on the premium paid for health insurance of your parents. If your parents are above 60 years, there is an upper limit of Rs 50,000, making the total deduction limit Rs 75,000.
Guaranteed return plans
In today’s volatile environment, there are many advantages of investing in guaranteed plans as they not only offer higher and safer rates of return but also offer great tax benefits. Irrespective of market conditions, these schemes keep your capital safe and secure, and even give returns of up to 7-7.5% depending on the investor profile.
Term Life Insurance
The death benefit provided by a term life insurance policy is tax free for the beneficiary. This means that no tax will be payable on the payment received by your loved ones, which can provide much-needed financial relief during difficult times. Apart from this, one can also claim tax deduction on the premium paid for term insurance plans. This deduction is available under Section 80C of the Income Tax Act up to a limit of Rs 1.5 lakh. Return of premium plans also provide tax free benefit of return of premium (excluding GST) if the policy holder survives the policy term.
Investing in these schemes can provide essential tax benefits and help an individual reduce his tax burden by allowing him to claim deductions on his taxable income. However, before taking any investment decision it is important to consider the features of the schemes and its suitability for one’s financial goals.
: Language Inputs