The financial year 2025 will begin in April, and many changes related to income tax are expected. People following the old tax regime can invest in certain government schemes for tax saving until March 31. This is their last chance to save on taxes.
Under Section 80C of the Income Tax Act, taxpayers can claim a tax deduction of up to Rs 1.5 lakh. Common people can take advantage of these deductions within the given time frame. There are several popular government schemes where investing can help not only save taxes but also claim these deductions. If you do not invest in these schemes on time, you may end up paying higher taxes. Here are some of the best schemes for tax saving.
Take Advantage of These 4 Government Schemes
1. Sukanya Samriddhi Yojana
Sukanya Samriddhi Yojana is a popular central government scheme for daughters. Parents can open an account for up to two daughters. The current interest rate is 8.2%, and the minimum investment amount is Rs 250.
2. Public Provident Fund (PPF)
PPF offers tax deduction benefits under Section 80C. The government is currently offering an interest rate of 7.1%. Investors can claim tax deductions ranging from Rs 500 to Rs 1.5 lakh.
Also Read –Post Office NSC Scheme: A Secure & Tax-Saving Investment Option
3. Senior Citizens Savings Scheme
This scheme also offers a tax deduction of Rs 1.5 lakh under Section 80C of the Income Tax Act. People aged 60 and above can open an account. The lock-in period is 5 years, with a minimum investment of Rs 1,000 and a maximum of Rs 30 lakh. The current interest rate is 8.2%.
4. National Savings Certificate (NSC)
The NSC scheme also provides tax deduction benefits of up to Rs 1.5 lakh. The interest rate on NSC is currently 7.7%, making it a great option for tax saving.
Also Read –New Income Tax Bill: Access to Personal Data Sparks Controversy
Invest in Tax-Saving Fixed Deposits
Many banks offer tax-saving fixed deposit schemes with a 5-year lock-in period. Under these FD schemes, investors can benefit from tax deductions.
Mutual Fund Tax Saving Scheme
A Mutual Fund Tax Saving Scheme can also be a great option for tax saving, with a 3-year lock-in period. It also provides tax deduction benefits.
(Disclaimer: The purpose of this article is to share general information based on various sources. Timesbull does not advise investing in any scheme, stock market, IPO, etc.)
