Best Tax Saving Investment Options in FY 2022-2023

Smart tax planning allows individuals to save on tax as well as make better investments for the future.

10 Income Tax Saving Options

Public Provident Fund (PPF)

Unit linked insurance plans (ULIPs) 

Fixed Deposit (FD)

National Savings Certificate (NSC) 

National Pension Scheme (NPS)

Health Insurance

Senior Citizen Savings Scheme (SCSS)

Pension Plans

Life Insurance

Tax Saving Mutual Funds

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.

How to plan tax deductions for a year?

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:

Tax savings by single, unmarried investors

1. ELSS or Equity Linked Savings Schemes

2. Market-linked investment options with EEE      benefits, such as ULIP, ELSS, Child Plans etc.

3. ULIPs or Unit Linked Insurance Plans

4. PPF or Public Provident Fund

5. Term insurance cover (with over 20 times       of annual income as sum assured)

A family with double income sources can claim over INR 8.5 lakh in deductions by making prudent investments and insurance. The options include:

Savings plans available for parents with dual income sources

1. The couple can together save up to INR 3     lakh under 80C

2. Can buy term plans individually with SI      equal 20 times of their annual salary

3. Can allocate 20% income annually      towards  market-linked investment with      EEE benefits such as ULIPs, ELSS, Child Plans.

4. Can invest in Public Provident Fund (PPF)

5. Invest minimum 10% of income in pension      plans such as NPS and other Pension      schemes.

Here are some tips to remember:

Tips to save better for future

1. Parents may note that they can claim tax     deduction on school fees

2. Parents must start investing in child plans

3. Investing in property is another option for      tax savings. You can avail tax benefits on      home loan

4. Also, mediclaim or health insurance cover      is another option that allow tax deductions

Here are some points to remember:

Tax saving plans for retired senior citizens

1. Senior citizens can opt for annuity schemes     for regular flow of money after retirement,    which are tax saving options, such as SCSS

2. They can opt for annuity plans to save tax      and generate income

3. ULIPs also serve as a option for fund      generation after retirement and allows      exemptions under Section 80C and 10(10D)

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