When it comes to post-tax returns, ELSS funds provide higher returns as compared to other Section 80C investment options such as PPFs.
Transparency is another major benefit with ELSS funds. Investors can track their portfolio and make changes, as and when necessary.
So, if you’re putting together a best tax saving plans list, ELSS funds have to be up there!
PPF (Public Provident Fund)
Public Provident Fund comes under the Exempt-Exempt-Exempt (EEE) category. This means that all deposits made in the PPF (Public Provident Fund) are deductible under section 80C of the Income Tax act.
As a result, the amount and interest is exempted from tax during withdrawal. That’s why a lot of investors opt for PPF when looking to save on taxes.
Remember, a PPF account cannot be closed prematurely. Invest in PPF only when you’re sure that you will not face sudden expenses. As you make progress in your professional life, your annual income will also increase. But as your paycheck gets heftier, so will the taxes deducted from it. And that’s where tax planning comes in. After all, you want to save as much as possible on your hard-earned money.
Hence, being aware of the best tax saving plans becomes even more important as you earn more money. But it can be tricky to understand with all the jargon thrown around on web pages.
Don’t worry, we’ll do the hard yards for you and list the best tax saving plans to invest in.
Save Taxes With These Plans
ELSS Funds (Equity Linked Saving Scheme)
ELSS is one of the most popular tax savings investment options. When it comes to long-term investments, ELSS is definitely a good option.
NSC (National Savings Certificate)
National Savings Certificate is one of the safest tax saving investment plans. NSCs are available in post offices and one can invest in them for up to 10 years.
Another benefit of investing in NSCs is that you can start investing with as little as Rs.100. On the other hand, there is no maximum limit to investing in NSCs.
Families can benefit from NSCs as these can be transferred from one individual to another if one wishes to.
Start Investing Today!
As you know, the earlier you start investing, the higher your chances of getting wonderful returns.
But when investing in the long run, remember to take care of your tax planning. And that’s where the best tax saving plans such as ELSS funds can do wonders for you.
