Monthly Tax Saving Investment
Monthly Tax Saving Investment: The financial year 2024-25 has started, before that people were involved in जोड-तोड में to save Income Tax till 31st March. But if you also invest in the last few months to save income tax, then you miss out on the real benefit.
You save tax by investing immediately but are not able to take advantage of the returns on that investment properly. Let us know how most taxpayers miss out on better returns.
Actually, the simple formula is, instead of investing the investment amount in the last months of the financial year, divide it into 12 months, that is, invest every month, and start it from the first month of the financial year i.e. April. Therefore, if you want better returns along with tax saving in the financial year 2024-25, then start investing from the month of April itself.
It has amazing benefits. When you invest for monthly tax saving, monthly interest is also added to it, which gives better returns than investing together in March. In such a situation, along with tax saving benefits, excellent returns also come into your portfolio. Let us know what the investment options are.
EPF
Employee Provident Fund (EPF) is one of the simplest options to save tax for the salaried class. In this, tax deduction of up to Rs 1.5 lakh is available under section 80C. EPF is managed by the Central Trustee Board (CBT). The interest rate on EPF for investors was fixed at 8.25 percent during the financial year 2023-24.
Public Provident Fund (PPF)
Most people in the country invest in Public Provident Fund (PPF) for tax saving, it is also a good option for investment. But if you invest money with a little wisdom, you will be able to take advantage of great returns. First of all, invest in PPF monthly, and deposit the money by the 5th of every month, so that you will also get the interest for that month.
With investment in PPF, maturity amount and interest are also tax free. This is a better way to make safe investment and a big fund in the long term. Investment in PPF account gets a tax deduction of Rs 1.50 lakh under section 80C.
NPS
By investing in National Pension System (NPS), you can get an additional tax exemption of Rs 50,000 under section 80CCD (1B). That is, by investing Rs 1.50 lakh under 80C and 80CCD (1B), you can get an additional tax benefit of Rs 50,000. This government scheme is helpful for the employed in long term tax saving as well as in creating a retirement fund. Excellent returns are possible on monthly investment in this scheme.
ELSS
If you want to invest in Mutual Fund for tax saving, then you can invest in Equity Linked Savings Scheme (ELSS), in which you will get the benefit of tax deduction on investment up to Rs 1.50 lakh under Income Tax Section 80C. Tax saving is done with better returns on ELSS. Due to double benefit, it is a popular tax saving instrument among salaried taxpayers.