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With the financial year coming to a close, here are some last-minute tax saving options you can explore.
An equity-linked saving scheme is a mutual fund scheme that offers market-linked returns and is eligible for tax exemption up to ₹1.5 Lakh under Section 80C. ELSS investments have a lock-in period of 3 years.
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National Pension Scheme contributions up to ₹1.5 Lakh can be claimed for tax exemption under Section 80C. Under Section 80CCD (1b) you can claim an additional deduction of up to ₹50,000.
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Public Provident Fund is a long-term tax-saving instrument. PPF contributions, the interest earned, and the maturity proceeds are tax-exempted.
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You can claim income tax benefits of up to ₹25,000 against health insurance premiums for yourself, your spouse, or dependent children. You can claim an additional deduction for health insurance premiums for parents.
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Investments made in tax-saving FDs are eligible for deduction under Section 80C. These FDs have a minimum lock-in period of 5 years. The rate of interest on such FDs varies from bank to bank.
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Premiums of up to ₹1.5 Lakh paid towards life insurance plans are covered under Section 80C. Death benefits/maturity benefits are tax-free under Section 10(D).
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NSC is a fixed-income investment scheme by the Government of India. The NSC has no maximum cap on investment. You can claim a tax benefit on NSC investments under Section 80C up to ₹1.5 Lakh.
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SSY is a fixed-income investment scheme through which you can make regular deposits and earn interest on it. Sukanya Samriddhi Yojana investments qualify for tax deduction under Section 80C.
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