Big news for income tax payers. Especially if you want to save tax then this article is for you. March 31 is just around the corner. If you haven’t made any tax-saving investments yet, you might run into some issues. To take advantage of the tax deductions for the financial year 2024-25, you need to act before March 31. You can claim a deduction of up to Rs 1.5 lakh under section 80C of the Income Tax Act, but this is only available for those sticking with the old tax regime. Check out the investment options below to help lighten your tax load.
Public Provident Fund (PPF)
The Public Provident Fund is a solid choice for tax-saving investments under Section 80C. Right now, the interest rate is 7.1 percent, and the government updates this rate every three months. You can invest anywhere from Rs 500 to Rs 1.5 lakh to claim your tax deduction.
Sukanya Samriddhi Yojana (SSY)
The Sukanya Samriddhi Yojana is designed for parents with daughters. You can open an account for your daughter, and the interest rate here is 8.2 percent, which beats the PPF. The minimum deposit is Rs 250, and the interest earned is tax-free.
National Savings Certificate (NSC)
For the National Savings Certificate, the minimum investment is Rs 1,000, and it offers an interest rate of 7.7 percent. The NSC matures in 5 years, making it a great option for low-risk investors looking to save on taxes.
Senior Citizens Savings Scheme is designed for individuals aged 60 and above. It features a lock-in period of five years. You can invest a minimum of Rs 1,000 and up to Rs 30 lakh. Keep in mind that tax deductions are available only up to Rs 1.5 lakh under Section 80C. The interest rate for this scheme stands at 8.2 percent.