19 June 2022 22:40

What could be the best tax saving option before a month of financial year end

Which option is best for tax saving?

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

How can I save tax every month?

15 Tips to Save Income Tax on Salary

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

How can I save tax on FY 2021 22?

Five Tax Saving Options Under Section 80C

  1. Public Provident Fund. The current rate of interest is 7.1% and is a safe option if you are looking at risk-free, stable returns in the medium-to-long term. …
  2. National Pension Scheme (NPS) …
  3. Life Insurance Plans. …
  4. Health Insurance/Mediclaim Under Section 80D. …
  5. Home Loans – Section 24B.


How do I maximize tax savings?

12 Tips to Cut Your Tax Bill This Year

  1. Tweak your W-4. …
  2. Stash money in your 401(k) …
  3. Contribute to an IRA. …
  4. Save for college. …
  5. Fund your FSA. …
  6. Subsidize your dependent care FSA. …
  7. Rock your HSA. …
  8. See if you’re eligible for the earned income tax credit (EITC)

Which is the best tax free investment?

Listed below are tax free investments that meet a variety of needs and financial goals:

Sr No. Best Tax Free Investments Tax Benefits
1. Life Insurance Under Section 80C and Section 10(D)
2. PPF (Public Provident Fund) Under Section 80C and Section 10(D)
3. NPS (New Pension Scheme) Under Section 80CCD
4. Pension Under Section 80CCC

How can I pay zero tax upto 15 lakhs?

1. Reduce Your Taxable Income by Up To Rs 1.5 Lakhs (Section 80C, 80CCC, 80CCD)

  1. Unit Linked Insurance Plans (ULIPs)
  2. Pension or Annuity Plans from Life Insurance Companies.
  3. Public Provident Fund (PPF) & Employee Provident Fund (EPF)
  4. New Pension Scheme Tier-I Account.
  5. Senior Citizen Savings Scheme.

How can I save tax if I earn 7 lakh?

If you earn an annual salary up to Rs. 7.75 lakh, here’s how you can pay zero tax

  1. Highlights.
  2. People earning up to Rs. 5 lakh are now exempt from paying tax.
  3. Salaried individuals earning up to Rs. 7.75 lakh can also pay zero tax.
  4. To reduce taxable income to Rs. 5 lakh, invest fully in Sections 80C, 80D, 80CCD(1B), 80TTA.


How a salaried person can save tax?

A tax saving Fixed Deposit or FD is quite popular as one of the tax saving options for salaried individuals. It is a type of FD with which help in availing of income tax deductions for salaried employees on your investments of a maximum of Rs. 1,50,000.

How can I save tax in 2021?

Moreover, let’s take a look at summary of other options to save income tax:-

  1. Saving in Life insurance premium Mutual Funds (ELSS Category only), PPF, FD (5 years, Tax Saver only), Post Office Deposits, National Saving Scheme.
  2. Payment of tuition fee (max 2 kids).
  3. Principal repayment of housing loan.


How do I pay less tax on 2021?

6 Ways to Lower Your Taxable Income

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


What is the last date for investment for FY 2021 22?

March 31, 2022

The ongoing Financial Year 2021-22 is coming to an end on March 31, 2022. The end of any financial is crucial for salaried taxpayers. Make sure as an assessee you complete a few important things before March 31.

How can I save tax on FY 2022 23?

Investment/contribution to provident fund, public provident fund, unit-linked insurance plan, equity-linked savings scheme (ELSS), Sukanya Samriddhi Scheme, 5-year tax-saving fixed deposit schemes, other specified investments, are eligible for a deduction up to Rs 150,000 under section 80C of the Act.

How can I save my income tax without investment?

Tax Saving Schemes

  1. Public Provident Fund (PPF)
  2. Sukanya Samriddhi Yojana (SSY)
  3. National Pension System (NPS)
  4. Employees’ Provident Fund (EPF)
  5. Sukanya Samriddhi Yojana Interest Rate.
  6. National Savings Certificate.
  7. House Rent Allowance.
  8. NSC Interest Rate.

How much maximum tax we can save?

What is the Maximum Tax Saving That You Can Avail?

Total Taxable Income Rs. 15,00,000
30% of Rs. 55,000 (10,65,000 – 10,00,000) 19500
20% of Rs. 500,000 (10,00,000 – 500,000) Rs. 100,000
(Add) 5% of Rs. 250,000 (500,000 – 250,000) + 12,500
Total Tax on Income 132,000

How can I save tax on 22 lakhs?

Tax Exempted Salary Components

  1. Meal Coupons.
  2. Car Maintenance.
  3. EPF (Contribution by Employer)
  4. NPS (Contribution by Employer)
  5. Gift voucher.
  6. Mobile Phone and the Internet Bill Reimbursement.
  7. Newspaper/Journal Allowance.
  8. Children Education/Hostel Allowance.

How can I save tax if I earn 12 lakh?

Tax Deductions under Section 80(C)

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

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.

Can we save 100% tax?

Here’s a list of popular investment options to save tax under section 80C.



Provisions Under Section 80C:

Investment Returns Lock-in Period
Public Provident Fund (PPF) 7% to 8% 15 years
National Savings Certificate 7% to 8% 5 years
National Pension System (NPS) 12% to 14% Till Retirement
ELSS Funds 15% to 18% 3 years

How do rich save taxes in India?

Tax exemptions can be availed by investing in the following tools:

  1. Senior Citizen Savings Scheme (SCSS)
  2. Sukanya Samriddhi Yojana (SSY)
  3. National Pension Scheme (NPS)
  4. Public Provident Fund (PPF)
  5. National Pension Scheme (NPS)


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 senior citizens save tax?

Here are some of the best tax-saving tips at the last minute for a taxpayer or a senior citizen looking to save tax.

  1. Senior Citizen’s Saving Scheme (SCSS) …
  2. Post Office Monthly Income Scheme (PO MIS) …
  3. National Savings Certificates (NSC) …
  4. Pradhan Mantri Vaya Vandana Yojana (PMVVY) …
  5. Five Year Tax Saving Fixed Deposits (FDs)

What is the income tax limit for senior citizens?

Income tax exemption limit is up to Rs. 5,00,000 for super senior citizen aged above 80 years.



Income Tax Slab Tax Slabs for Senior Citizens (Aged 60 Years But Less Than 80 Years)
Rs 0 – Rs. 3.00 lakh NIL
Rs 3.00 lakh – Rs 5.00 lakh 5%
Rs 5.00 lakh – Rs 10 lakh 20%
> Rs 10 lakh 30%


How much can senior citizens earn tax free?

A senior citizen can earn tax-free income up to ₹3 lakh and super senior citizens above 80 years can earn tax-free income to up to ₹5 lakh.

Do seniors over 70 pay taxes?

Most people age 70 are retired and, therefore, do not have any income to tax. Common sources of retiree income are Social Security and pensions, but it requires significant planning prior to the taxpayer turning age 70 in order to not have to pay federal income taxes.

How much is tax free over 60 years?

Rs. 3 Lakh

Income Tax Slab for Senior Citizens – FY 2019-20



This exemption limit stands at up to Rs. 3 Lakh for individuals above 60 years of age.

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