7 min read
Updated on Dec 11, 2022
Everyone planning for savings and investments for a financial year includes some tax saving options. Tax-saving is definitely a significant aspect of financial planning. With a smart strategy of tax-planning, it is possible to benefit from the dual purpose of saving tax and meeting financial goals.
Let us discuss some best tax saving investment options in FY 2022-23 to help you get a better perspective on tax benefits and meeting your future monetary needs.
|Investment Options for Saving Tax||Particular Income Tax Section for Tax Deduction|
|Life Insurance||Section 80C (Premium) Section 10(10D) (Death / Maturity)|
|Health insurance||Section 80D|
|Pension Plans||Section 80CCC(sub-section under Section 80C)|
|Tax-saving mutual funds||Section 80C Section 10(10D) (Death/Maturity)|
The start of the financial year on April 1 marks the beginning of the tax saving year for individuals who are on salary or those who are non-salaried tax payers. With a good investment portfolio, not only can a person save on tax via tax deduction but can also earn income that is tax-free.
Hence, it is better to start planning for tax benefit investment funds from the start of the financial year, rather than waiting for the end. If you do not plan your tax deductions meticulously from the early quarters of a financial year, you may lose out on saving enough tax or getting maximum returns.
As seen above, most investment plans that allow tax-saving come under Section 80C of Income Tax and allow exemption for up to INR 1.5 lakh. Depending on their needs, investors can choose varied tax saving plans to invest on.
For single unmarried people in their 20s or 30s, or single income couples or single income parents where only one family member is earning can invest in the below tax saving options:
Couples with children must also remember that they can claim tax deduction on child higher education loans under section 80E and can claim tax deduction for tuition fees under section 80C.
A family with double income sources can claim over INR 8.5 lakh in deductions by making prudent investments and insurance. The options include:
Here are some tips to remember:
Here are some points to remember:
To Sum Up
As seen above, tax saving investment options benefit policyholders in different ways. Hence, if you are planning an investment, go for the ones allowing tax exemption benefits. Hence, you must consider the tax saving plans mentioned in the post above.
Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.
View this post on Instagram
There is no limit to buying tax-free investments. Individuals can purchase as many investments to save tax as they want. However, it is important to note that there is a certain limit of tax deduction which needs to be maintained while claiming tax benefits. Yes, Section 80C of the Income Tax Act, 1961 set a maximum limit of investment at INR 1,50,000 from the total taxable income of the insured. To reduce tax legally, one must invest in the various government approved tax-free investment instruments. Below are few ways to reduce taxable income in India: Invest in instruments allowing tax deduction that are listed under Section 80C of Income Tax Act The Income Tax Act allows several tax exemptions and deductions to taxpayers including deductions under Section 80C and Section 80D, standard deductions, house rent allowance, leave travel allowance and so on.
FAQs on Tax Saving Investment Options
How many tax-free investment instruments can an individual have?
Is there any maximum limit of investment under section 80c?
How to reduce tax legally?
Can I reduce my taxable income? How?
Claim the tax deduction investments to save on tax
If you have a home loan, avail tax deduction on it
Death benefit or maturity benefit amounts received under life insurance plans are exempted from tax
Section 80D of income tax allows a portion of health insurance to be exempted from tax. Further, premiums paid for senior citizens health insurance also come under tax deduction.
What tax exemptions are available in India?
There is no limit to buying tax-free investments. Individuals can purchase as many investments to save tax as they want. However, it is important to note that there is a certain limit of tax deduction which needs to be maintained while claiming tax benefits.
Yes, Section 80C of the Income Tax Act, 1961 set a maximum limit of investment at INR 1,50,000 from the total taxable income of the insured.
To reduce tax legally, one must invest in the various government approved tax-free investment instruments.
Below are few ways to reduce taxable income in India:
Invest in instruments allowing tax deduction that are listed under Section 80C of Income Tax Act
The Income Tax Act allows several tax exemptions and deductions to taxpayers including deductions under Section 80C and Section 80D, standard deductions, house rent allowance, leave travel allowance and so on.
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
The Union Budget 2023 was presented on February 1, which highlighted certain changes in the new tax regime. Let us understand them to see which one.
The recent union budget presented by Nirmala Sitharaman, India’s Finance Minister, included some key changes in the new income tax regime. Let us take a.
Best saving solutions in India specialized for NRIs! Are you a Non-Residential Indian who wants to invest in your home country? Well, if your answer.
Retirement is regarded as the golden period of one’s life. However, to make sure that it stays that way, you must have steady income coming.
PLI or Postal Life Insurance schemes were launched by India Post aided by the central government of India. PLI is among the several services offered.
Are you looking at a secured investment scheme to double your money in just 10 years? If so, KVP or Kisan Vikas Patra with 7.2%.
When it comes to the popular and safe investment options that are commonly sought by people in India, the Kisan Vikas Patra (KVP) features among.
The West Bengal government has recently introduced a pension scheme to support the needy people of the state. Named as 'Joy Bangla Pension scheme', this.
National Pension Scheme (NPS) Tier 2 account is a Central Government scheme provided to protect the interest of the policyholders by means of various regulations..
Speak to our advisor
Corporate Office : Mahindra Insurance Brokers Ltd ( A Mahindra Group Company ) Sadhana House, Ground Floor, 570 P. B. Marg, Behind Mahindra Towers, Worli, Mumbai 400018.
Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).
Insurance is the subject matter of solicitation.
For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.
Copyright © 2023 Mahindra Insurance Brokers. All Right Reserved.