- Invest in tax-saving schemes by 31st March 2025 to benefit from tax exemptions.
- Select from a variety of schemes offering distinct advantages, including guaranteed returns and tax benefits.
- Plan your investment wisely to secure financial growth and tax savings together.
As the financial year approaches its end on 31st March 2025, this is the opportune moment for taxpayers to strategically invest and save on taxes. The upcoming fiscal year kicks off on 1st April, presenting a fresh start for your financial planning.
Here, we’ll dive into the top 7 government-backed schemes that can aid you in saving taxes effectively:
Public Provident Fund (PPF)
PPF Scheme is an established, secure investment option boasting a maturity period of 15 years, suitable for long-term financial planning. With a current interest rate of 7.1%, it falls under the E-E-E (Exempt-Exempt-Exempt) category. This means that investments, interest earned, and maturity amounts are all tax-free. Under Section 80C, you can claim tax deductions up to ₹1.5 lakh annually.
National Pension System (NPS)
NPS Scheme is ideal for those eyeing retirement planning. Through Section 80C, the scheme allows tax deductions, complimented by an additional benefit of ₹50,000 under Section 80CCD(1B). Hence, it provides a conducive environment for building a retirement corpus as well as availing pension benefits.
Equity Linked Saving Scheme (ELSS)
ELSS Scheme, crafted as a mutual fund option, caters to those seeking both returns and tax savings. Under Section 80C, investments up to ₹1.5 lakh are deductible. Notably, ELSS has a shorter lock-in period of three years compared to other tax-saving instruments.
Sukanya Samriddhi Yojana (SSY)
If you have a daughter, SSY Scheme stands as a promising choice with an attractive interest rate of 8.2%. It supports an annual investment ranging from a minimum of ₹250 to a maximum of ₹1.5 lakh, availing tax deductions under Section 80C. This scheme is tailored to ensure financial security for the girl child’s future.
Senior Citizen Saving Scheme (SCSS)
SCSS Scheme accommodates senior citizens with a rewarding interest rate of 8.2%. Investment can vary from ₹1,000 to ₹30 lakh, with tax benefits applicable under Section 80C. It is lauded as a premier option for senior citizens seeking a stable income post-retirement.
National Saving Certificate (NSC)
Another viable option is the NSC Scheme, offering a secure, guaranteed return at 7.7% interest. Investments start from a minimum of ₹1,000 without any upper limit, and accounts are accessible through any post office across the nation. Section 80C tax exemptions apply here too.
Fixed Deposit (FD)
Investing in a five-year FD Scheme, also known as a tax-saving FD, can gain you tax exemption benefits. This facility is available in both banks and post offices. However, the interest rates vary, so it’s advised to compare rates before investing. This too avails Section 80C deductions.
In summary, before 31st March 2025, explore these strategic investment avenues not just to reduce your tax liabilities but to also build a substantial fund for your future. These investments are designed to align financial growth with tax savings, making them significantly advantageous.