Tax Saving Schemes: Make Investment in ELSS mutual fund, NPS (Pension Plan), Health & Term Insurance to save tax up to ₹78,000 under section 80C,80CCD & 80D.
investment decisions should be governed by real financial goals and not tax-saving alone(read why?). But most people ignore this important advice and get attracted / give undue importance to things like tax-saving. But let’s not get into that discussion today....
NPS Tier 2account does not have any lock in period. Subscribers can withdraw at any time from the account. However, government employees have a lock in period of three years. Also, the NPS tier 2 account qualifies for tax saving up to INR 1,50,000 under Section 80C of the Income Tax ...
How NPS Helps in saving Tax NPS helps save tax in 3 ways: Sec 80CCE:Rs 1.5 Lakh (along with 80C) Sec 80CCD(1B): Rs 50,000 (over and above 1.5 lakh) which helps you in saving 15,600 Rs. Sec 80CCD(2D): 10% of Basic for corporates The best fund manager in NPS for Private ...
This reduction in the lock-in period pits the NPS against ELSS mutual funds in the battle for the tax-saving pie. Direct plans of ELSS funds charge up to 1.5% a year, while regular plans can cost 2.5%. The expense ratios of NPS funds are 0.01%. ...
Currently, there is no other scheme that gives an assured return of around 8% and that too tax-free. EPF contribution happens before salary comes to the bank account so it is compulsory saving for retirement. You can open an NPS account and contribute to it at a personal level. So you ...