Most salaried people wait till the last moment to do their tax planning and end up paying higher income tax or frantically investing in tax saving instruments that may not be appropriate for them.
By planning and spending time in researching various tax saving options, they can make better investment decisions and also save on income tax. Section 80c of income tax act specifies the investments that can help you save tax. The amount that you invest in these tax-saving instruments can be deducted from your taxable income at the time of calculating your tax amount for the year. The maximum deduction allowed under this Section is Rs.1.5 lakh per year.
It is important to know the various investments that fall under Section 80C in order to take informed decisions at the time of tax planning:
1) Provident Fund and Voluntary Provident Fund
The amount that is deducted from your salary as your contribution towards PF is eligible as deduction at the time of calculating your income tax. You have the option of enhancing the contribution that you make to your Provident Fund. This is called Voluntary Provident Fund and is eligible for income tax deduction under section 80C. Interest earned up to 9.5% is tax-free.
2) Public Provident Fund
This is a scheme offered by the government. You can invest any amount from Rs.500 to R.1,50,000 in a year, under this scheme. Your contribution to the Public Provident Fund is eligible for income tax deduction. The current interest rate in PPF is 9.5% and the interest is tax free as well.
3) Life Insurance Premiums
Any life insurance premium that you pay towards policies in your name, your spouse’s name or your children’s name are eligible for income tax exemptions under 80C. Premiums paid towards unit-linked policies are also eligible for tax deduction.
4) Equity Linked Savings Schemes
These are specially created mutual fund schemes that are meant for tax saving and gives you market-related returns. Any amount that you invest in ELSS funds is eligible for tax deduction.
5) Home Loan Principal Repayment
The EMI that you pay consists of two parts – the interest and the capital repayment. The amount that goes towards principal repayment qualifies for income tax deduction under sec 80C.
6) National Savings Scheme
This is a tax saving scheme with tenor of 5 years. Any contribution to NSC qualifies for sec 80C. The interest from NSC is compounded half-yearly and is taxable.
7) Infrastructure Bonds
Infrastructure bonds issued by infrastructure companies are eligible for income tax deduction.
8) Five-Year Bank FD
Any amount deposited as FD in a scheduled bank, for a period of at least 5 years is eligible for section 80C of income tax.
9) Term Deposits with Post Office
Term deposits with Post Office with tenor of 5 years is eligible for tax deduction.
10) NABARD Rural Bonds
Investing in NABARD rural bonds gives you tax relief under Section 80C.
11) Tuition Fee
The amount that you pay as tuition fee for your children, for a maximum of 2 children, is eligible for income tax deduction.
Best Indian Destination to Visit
Goa- Best Indian Destination to Visit
Goa is a state in western India. It is known for its beaches, backwaters, Adventure water Sports, waterfalls, and temples. It is a popular tourist destination due to its laid-back atmosphere, cheap hotels, and world-class restaurants. Palolem Beach, Colva Beach, Agonda Beach, Dudhsagar Falls, Anjuna Market, Church of Our Lady of the Immaculate Conception, Braganza House, Mahadev Temple, Palácio do Deão, Mangeshi Temple, Fontainhas, Bhagwan Mahavir Wildlife Sanctuary, and Reis Magos Fort are famous destination in Goa. And Goa is also know for night life. Enjoy Night clubs, party here . So in Goa you can teste a different culture in Goa.
Delhi- Best Indian Destination to Visit
Delhi is the national capital of India and home to 1.17 billion people. It’s a city of contrasts where modernity coexists with ancient history. From the busy streets to the quiet temples, Delhi offers something for everyone. Red Fort, Jama Masjid, Qutub Minar, Lotus Temple, Aksherdham, Zoo, Old Fort, India Gate, Humayun Tomb are some of best Destination to visit. Apart form these You can visit:- Lajpat Nagar, sarojini Nagar, Janpath and Jama Masjid are the best Shopping Places in delhi. And in delhi you can find out best street foods menu in veg and non veg dishes.
Agra- Best Indian Destination to Visit
Agra is a major city of Uttar Pradesh, and a major tourist attraction is located in Agra call as “ The Taj Mahal”. You can Expericne the art of Mughal empire in agra. ALso this is one of the places to visit near delhi within 200 kms. Beyond Taj Mahal You Can Visit These Places That Are Near Or In Agra. These places are Agra Fort, Sikandra, Fatehpur Sikri, Dayal Bagh Temple, Bateshwar Temple, Chini Ka Rauza, Keetham Lake, Mathura, and vrindavan. Mathura and vrindavan are close to agra about 70 Kms far. These are Hindu holy places.
Jaipur- Best Indian Destination to Visit
Jaipur is the capital of the Indian state of Rajasthan. It alludes to the royal dynasty that once ruled the region and built the Old City, also known as the “Pink City” because of its distinctive building colour, in 1727. In the heart of a grand, colonnaded area lies the City Palace complex. Gardens, courtyards and museums still exist today as part of its royal house. Hawa Mahal, Jainivas Garden, City Palace, Amber Palace at Jantar Mantar, Samode, Light and Sound Show, Nahargarh Fort, Jaigarh Fort, Jal Mahal, Galtaji are some of the best places in Jaipur.
Kashmir- Best Indian Destination to Visit
Kashmir Valley is one of the top tourist destinations in India. Apart from its apple orchards, flower gardens and other attractions, Kashmir is famous for its natural beauty. With its distinctive handicrafts and famous Kashmiri shawls, it attracts tourists. The most popular tourist destinations in Jammu and Kashmir are Srinagar, Mughal Gardens, Gulmarg, Pahalgam, Patnitop and Jammu. Many Hindu pilgrims visit Vaishno Devi and Amarnath every year, which has a significant impact on the state’s economy.
Manali- Best Indian Destination to Visit
Manali is a city in Himachal Pradesh, India. It is one of the top ski resorts in India. It is famous for its beautiful surroundings, favorable climate and extensive cultural history. It is a popular travel destination in India and attracts visitors from all over the world.
Manali is a popular honeymoon destination as you can witness snowfall and gorgeous mountain views from late December to early January. This is the ideal time for skiing enthusiasts. Camping, hiking, mountain biking, ziplining, rappelling, paragliding, downhill cycling, jeep safaris, river crossings, angling, and many other activities are available.
Kerala- Best Indian Destination to Visit
The Indian state of Kerala is situated on the moist Malabar Coast. It is famous for its backwaters, network of canals and palm-fringed beaches. The Western Ghats are naturally occurring mountains that support a wide variety of plant life including tea, coffee and spice plantations. Wayanad and other sanctuaries as well as national parks like Eravikulam and Periyar are home to elephants, langur monkeys and tigers. Alleppey, Kochi, Thekkady, Munnar, Thrissur, Kovalam, Wayanad, Thiruvananthapuram, Kozhikode, Kannur are best destination to visit in Kerala.
Andaman and Nicobar- Best Indian Destination to Visit
The Andaman Islands are an Indian island chain in the Bay of Bengal. And Due to the increasing popularity of beaches and adventure sports like snorkeling and sea walking, tourism to the Andaman and Nicobar Islands is on the rise. Long Island, Havelock Island, Little Andaman Island, Diglipur, Parrot Island, Bharatpur Beach, Samudrika Marine Museum, Cellular Jail, Lamiya Bay Beach are some of the best spots to visit in Andaman and Nichobar. Indian tourists do not require a visa to visit the Andaman Islands, but if they wish to visit any tribal area, they require special authorization from the Deputy Commissioner at Port Blair. Foreign nationals require a permit. This clearance is given to foreign nationals coming by air on arrival at Port Blair. This can be a best Indian destination to visit.