Tax exempt (EEE) options for tax saving in India

Three Tax-Saving Investment Options to Generate Tax-Free Income

Public Provident Fund. Public Provident Fund (PPF) is a preferred investment scheme owing to its steady and safe returns. …
Employee Provident Fund. …
Unit-Linked Insurance Plan. …
Sukanya Samridhi Yojana.

Which investment does not have EEE tax regime?

EEE-Exempt Exempt Exempt
The third and final exempt here means that the income you generate from the investment would not be taxable at the time of withdrawal. EEE status is usually applies tolong-term investment instruments, such as Employee Provident Fund and Public Provident Fund.

Does tax saving FD have EEE tax regime?

What is a Tax-Saving FD. A tax-saving fixed deposit (FD) account is a type of fixed deposit account that offers a tax deduction under Section 80C of the Income Tax Act, 1961. Any investor can claim a deduction of a maximum of Rs. 1.5 lakh per annum by investing in a tax-saving fixed deposit account.

Which investment option gives the benefit of EEE?

Some of the prominent EEE investment options are: ULIP Schemes: ULIPs or Unit Linked Investment Plans are life insurance plans with a wide range of investment features. Some of the most unique ULIP features include multi-fund allocation, automated portfolio management, and goal safety.

Which investment is best for tax exemption?

Best Tax-Saving Investments Under Section 80C

Investment	Returns	Lock-in Period
National Pension Scheme (NPS)	9% to 12%	Till Retirement
Unit Linked Insurance Plan (ULIP)	Returns vary from plan to plan	5 years
Public Provident Fund (PPF)	7.1% currently	15 years
Sukanya Samriddhi Yojana	7.60%	21 years

Which of the following schemes enjoys the benefit of triple tax exemption is the Exempt-Exempt-Exempt EEE status?

Note : PPF is one of the few investment products that enjoys the benefit of triple tax exemptions, i.e., the exempt-exempt-exempt (EEE) status.

Are ELSS funds EEE?

ELSS also known as tax saving mutual funds fall under EEE (Exempt-Exempt-Exempt) status. EEE status means the amount invested, income earned and maturity proceedings are exempt from income tax.

Can I break 5 years tax-saving FD?

No. Premature withdrawals of tax-saving FDs are not allowed. According to the Bank Term Deposit Scheme 2006, you cannot break these FDs before the five-year expiry.

What are triple tax-free bonds?

Triple-tax-free, or “triple tax-exempt”, is a way of describing an investment, usually a municipal bond, where the interest payments are exempt from taxes at the municipal, state and federal levels.

What is exempt-exempt-exempt tax regime?

Exempt-Exempt-Exempt tax regime usually applies for long-term investments that are intended to build a corpus to meet long-term goals. For instance, investment instruments such as Public Provident Fund (PPF) and Employee Provident Fund (EPF) are covered under the Exempt-Exempt-Exempt tax regime.

How can I save tax on 10 lakhs?

Tax savings scheme under Section 80C, NPS under Section 80CCD(1b), education or house loans, and even insurance premiums can help you achieve the goal of zero tax in a given year if your annual salary is less than Rs 10 lakh per year.

How can I save tax on 22 lakhs?

Tax Exempted Salary Components

Meal Coupons.
Car Maintenance.
EPF (Contribution by Employer)
NPS (Contribution by Employer)
Gift voucher.
Mobile Phone and the Internet Bill Reimbursement.
Newspaper/Journal Allowance.
Children Education/Hostel Allowance.

How can I save tax on 12 lakhs?

Tax Deductions under Section 80(C)

Investments in PPF (Public Provident Fund)
Investments in EPF (Employee Provident Fund)
Investments in ELSS funds (Equity-Linked Savings Scheme)
Investments in NSC (National Savings Certificates)
Payment of premiums against Life Insurance Policies.

Can I save more than 1.5 lakh in PPF?

PPF account: A Public Provident Fund (PPF) account is an EEE investment where you get income tax exemption on investment up to Rs 1.5 lakh per annum. It is to be noted that an earning individual cannot have more than one PPF account and one cannot invest more than Rs 1.5 lakh in their PPF account in a particular year.

How can I save tax beyond 1.5 lakhs?

Recommended ways of saving taxes under Sec 80C,80D and 80EE

Make an investment of Rs 1.5 lakh under Sec 80C to reduce your taxable income. …
Buy Medical Insurance, maximum deduction allowed is Rs. …
Claim deduction up to Rs 50,000 on Home Loan Interest under Section 80EE.

How can I reduce my taxable income 2021?

6 Ways to Lower Your Taxable Income

Save for Retirement. Retirement savings are tax-deductible. …
Buy tax-exempt bonds. …
Utilize Flexible Spending Plans. …
Use Business Deductions. …
Give to Charity. …
Pay Your Property Tax Early. …
Defer Some Income Until Next Year. …
Need a Loan?

How can I reduce my taxable income?

How to Reduce Taxable Income

Contribute significant amounts to retirement savings plans.
Participate in employer sponsored savings accounts for child care and healthcare.
Pay attention to tax credits like the child tax credit and the retirement savings contributions credit.
Tax-loss harvest investments.

How can I save maximum tax on my salary?

15 Tips to Save Income Tax on Salary

House Rent Allowance (HRA)
Leave Travel Allowance (LTA)
Employee Contribution to Provident Fund (PF)
Standard Deduction.
Professional Tax.
Exemption of Leave Encashment.
Exemption Under Section 89(1)
Exemption from the Receipt Upon Opting for Voluntary Retirement.

What income is tax free?

As per income tax laws, filing income tax returns is mandatory for individuals whose total income during the financial year exceeds the exemption limit of more than the gross total income of ₹2,50,000.

How can I save my tax except 80C?

Best 10 Tax Saving Investment Options Other Than 80C

Tax saving with NPS under Section 80CCD (1B): …
Tax savings on Health insurance premiums under Section 80D: …
Tax savings on repayment of an Education loan under Section 80E: …
Tax savings on Interest component of Home loan under Section 24:

Is 80C and 80D same?

Section 80C offers tax deductions on different types of tax-saving investments, such as ULIP, PPF, ELSS, EPF, LIC premium, etc. Section 80D deduction is allowed for availing tax exemptions on health insurance premiums paid for self, family, & parents and expenses incurred on preventive health check-ups.

Can I invest more than 1.5 lakh in 80C?

There is no legal restriction on the maximum amount invested in an ELSS, though the deduction under Section 80C is limited to Rs 1.5 lakh only.