Illustration by Raj Verma
With the current financial year nearing its close, it s time to take stock of your tax-saving investments. In case you opt for the old tax regime, you can claim deductions of up to Rs 1.5 lakh in a financial year under Section 80C. There are other sections also to help you reduce your tax outgo. Do your tax planning activity at the beginning of the financial year to avoid last-minute hiccups. But in case you are late, there s still time to invest and save taxes. A look at the options available for last-minute investors.
Section 80C: The Most Popular
Tax-saving in the Eleventh Hour- Business News businesstoday.in - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from businesstoday.in Daily Mail and Mail on Sunday newspapers.
Read more about Sheen diminished for VPF, but not lost: Here s how should you invest? on Business Standard. Only PPF and Sukanya Samriddhi offer higher returns among govt-backed schemes
Girl Power: Instruments To Help You Achieve Your Daughter’s Financial Goals
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Image: Shutterstock
Covid-19 was raging and several parts of Mumbai were locked down, but that didn’t stop Sarika Sinha from giving her daughter the best gift a parent can. Last month, the Mumbai-based finance professional opened a Sukanya Samriddhi Yojana account for her daughter Praashvi, now two. “I will put the maximum Rs 1.5 lakh in this scheme every year,” she beams. Financial planners say the Sukanya scheme is a good option for parents with daughters below 10 years. “The scheme offers assured returns, so there is a predictable compounding of the investment every year,” says Prableen Bajpai, founder and managing partner, FinFix Research and Analytics. “What’s more, the interest is fully tax free. Parents should not let go of this opportunity,” she adds.
Updated Feb 03, 2021 | 07:12 IST
The government s increasing dependence on small savings schemes such as PPF and NSC to fund its annual fiscal deficit is likely to ensure that interest rates are kept intact so as not to hurt inflows Interest rates on PPF, other small savings scheme unlikely to be slashed this fiscal | Photo Credit: Thinkstock
Union Finance Minister Nirmala Sitharaman may have dashed the hopes of small investors by not increasing the annual Public Provident Fund (PPF) contribution limit but economists anticipate that interest rates paid to investors on small savings schemes won’t be reduced this year.
Over the past few years, the government has become increasingly dependent on small savings schemes such as PPF, NSC, and post office deposits etc to fund its annual fiscal deficit.