Various Tax Savings Schemes

Indian Life Insurance Companies offer various Tax Savings Schemes. Both government and private insurance companies offer the life insurance and tax savings plans at the same time under section 80C of Income Tax. There is no any plan or scheme that fully exempted people from making tax payment. However, there are various insurance policies and investment plans that help people in reducing the tax. Followings are various Tax Savings Schemes.

Public Provident Fund: The central government of India launches the PPF (Public Provident Fund) for any Indian citizen. PPF (Public Provident Fund) is the investment and Tax Savings Schemes. There is no need to be salaried or government employee for getting this plan. The individual can open an account of Public Provident Fund even if the person does not earn money. This fund is eligible for reducing the tax and no tax has to pay on maturity. 500 to 70,000 per annual is the minimum and maximum range respectively of the PPF. Investor can withdraw the amount on the 7th financial year.

Post Office Deposits: People can also save their taxes by investing in saving plans from Post offices in India. Post Offices offer various different savings schemes and short period options from 1 to 5 year period. Post Offices provide various benefits of tax savings are.

a)      Kisan Vikas Patra

b)      Post Office Recurring Deposits

c)      National Savings Scheme

d)      National Savings Certificates

e)      Public Provident Funds

f)       Post Office Time Deposits

g)      Post Office Monthly Income Scheme

Insurance: Person can avail tax rebates by investing in saving schemes of life insurance from government or private life insurance companies like SBI Life Insurance, HDFC Life Insurance, and other.

Equity Linked Savings Scheme (ELSS): ELSS (Equity Linked Savings scheme) is a Tax Savings tool. These tax saving schemes are popular Tax Savings investment. This is the scheme of mutual fund; hence only mutual funds companies can sell these schemes. The Lock-in period of ELSS is 3 years.

Other Alternatives: Other Tax Savings Schemes are as follows.

a)      Public Provident Fund

b)      Life insurance premium payments

c)      Contributions to Employees Provident Fund (EPF) / GPF

d)      National Saving Certificates (NSC)

e)      Tuition Fees including college fees or admission fees

f)       Senior Citizens Savings Scheme (SCSS)

g)      Unit Linked Insurance Plan (ULIP)

h)      Equity Linked Savings Scheme (ELSS)

i)        Repayment of Housing Loan

j)        5-Year fixed deposits with Post Office and banks

k)      Infrastructure Bonds issued by Banks

l)        National Pension Scheme (NPS)