4 Investment Options That Help In Tax Saving Life insurance tax.
Short-term investments play a great role in distributing your money or your savings in different places and still saving it. In other words, making short-term investments is beneficial. Warren Buffet, the investment expert said it once, to never keep all your eggs in one basket. When this saying is perfectly aligned with investments, you will realise that many short-term investments can help you make one huge profit. Your “places to make investments” list should have a subtle mixture of all kinds of investments – aggressive, conservative and balanced. If you feel losing it amidst the huge number of investment ads that only add on to the confusion, here is a list that makes things clear.
Given below are four short-term investments i.e. tax saving tips that can avail you with amazing tax benefits and tell you how to save tax. They are as follows:
Under Section 80D, with the help of a health insurance, you can obtain a deduction of Rs.50,000 for senior citizens and a deduction of a total of Rs.25,000 for others on medical expenses. A health insurance – a popular and smart tax saving investment safeguards you and your loved ones at the time of unexpected emergencies. Emergencies arise unannounced and they are out of anyone’s control. Subject to a certain set of terms and conditions,a health insurance, when claimed, exempts you from certain taxes.
Affordable life insurance rates
2. Single Premium Life Insurance:
Under this insurance, you get two benefits. One, from the investment and two, a life cover option. All you have to do is just pay once and then avail its benefits for as long as your policy lasts. As per Section 80D, the amount you pay as your premium gets deducted under the tax exemption criteria. A maximum of 10% from the assured sum is deducted from taxes. Under the same, the ceiling limit is Rs.1,50,000.
3.Rajiv Gandhi Equity Savings Scheme (RGESS):
This scheme is best suited for equity investors in the domestic capital markets. It is indeed a tax saving investment that will give you a lot of benefits and absolutely no regrets. The lock-in period of this scheme is three years. The first year is a must lock-in period and the other two years are flexible. As a result, due to the flexibility of other two years, it is ideal for investors looking for flexible short-term investments. A maximum investment of Rs.50,000 is required. The tax that is deducted is half of the sum invested. Under Section 80CCG, you are subject to this kind of deduction.
4.Public Provident Fund or PPF:
This scheme has a minimum investment of Rs.500 and a maximum investment of Rs.1.5 lakhs. Under the norms of the Income Tax Act and Section 80C, the tax is deducted up to an amount of Rs.1.5 lakhs. The lock-in period is of 15 years.
You may choose the suitable options from the above list and avail tax benefits easily.