What is the best investment for 80C?

  July 29, 2019
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What is the best investment for 80C?

Best Tax Saving Investments Under 80C

  • ELSS (Equity Linked Saving Scheme) Lock-In: 3 years. Returns: 15-18% (Based on the last 5 years)
  • Public Provident Fund (PPF) Lock-In: 15 years. Return: 8%
  • Bank FDs. Lock-In: 5 Years. Returns: 6-7%
  • ULIPs. Lock-In: 5 Years (Minimum) Return: 11-13% (Last 5 years)

How much tax should you save on 80C?

Section 80C – Deductions on Investments It allows a maximum deduction of Rs 1.5 lakh every year from the taxpayers total income. The benefit of this deduction can be availed by Individuals and HUFs.

Which SIP is best for tax free under 80C?

Investors can attain tax deductions up to INR 1,50,000 under Section 80C of income tax Act from their taxable Income….2. Mirae Asset Tax Saver Fund.

Mirae Asset Tax Saver Fund Growth
Launch Date 28 Dec 15
Min Investment 500
Min SIP Investment 500
Exit Load NIL

What are the best investments to reduce taxes?

The Senior Citizens’ Saving Scheme (SCSS) is the best investment option for those above 60, especially after the additional tax exemption for interest up to Rs 50,000. An account can be opened in a Post Office or at designated branches of banks.

Is PPF covered under 80C?

PPF contributions made every year are eligible for tax deductions under Section 80C of the Income Tax Act, 1961. PPF accounts also have a maximum deposit limit of Rs. 1.5 lakhs per year, therefore, all deposits made to your PPF account can be claimed as deductions u/s 80C.

Is NPS under 80C?

Answer: No. NPS is not fully tax exempt presently. You can claim deduction for contribution made by you toward your NPS account, under Section 80CCD (1) and 80CCD (1B). The income accrued during continuance of the account is also tax free.

Will PF comes under 80C?

What is EPF? Does this come under Sec 80C? An employee’s contribution to the Employee Provident Fund (EPF) account also earns a tax break under Section 80C of up to Rs 1.5 lakh. This amounts to 12% of salary that is deducted by an employer and deposited in the EPF or other recognised provident funds.

Is ELSS better than PPF?

ELSS investment relies on equity and has higher volatility compared to PPF which is a debt instrument with negligible volatility. With both ELSS and PPF, you can get a maximum deduction of INR 1.5 Lakh under Section 80C of the Income Tax Act, 1961.

How can I save tax on 20 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.

Which is better ELSS or PPF?

Which is better NPS or PPF?

As you can see, NPS makes for a great retirement savings scheme. It may not be the best scheme to invest in if your aim is to save for other purposes like children’s education, daughter’s marriage etc. For all of these needs, a PPF scores over NPS as the best investment scheme.

Is PF and PPF same?

PPF vs EPF: EPF or Employees’ Provident Fund is a government-backed retirement benefit scheme designed for salaried individuals only whereas PPF or Public Provident Fund is designed to provide old age income security to a PPF account holder.

Which is the best tax saving option under Section 80C?

Section 80 C: Best Tax Saving Investment option under Sec 80C Section 80C :Investment in ELSS Fund or Tax Saving Mutual Fund is considered as the best tax saving option. These funds are specially designed to give you dual benefit of saving taxes and getting higher returns on investment. Invest in ELSS and save upto Rs 46,800 in taxes

Which is the best tax saving mutual fund?

Section 80C :Investment in ELSS Fund or Tax Saving Mutual Fund is considered as the best tax saving option. These funds are specially designed to give you dual benefit of saving taxes and getting higher returns on investment.

What are the best tax-deductible investments?

Such investments include ELSS (Equity Linked Saving Scheme), Fixed Deposits, Life Insurance, Public Provident Fund, National Savings Scheme and Bonds. There are a very few investment avenues that provide a further tax deduction, over and above this limit.

Which tax saving investments scheme is best for You?

This tax saving investments scheme offers flexibility and liquidity in investment and is best suitable for individuals who have a high-risk appetite. ELSS scheme offers a high return on investment over a long-term period along with the benefit of tax-exemption.