2023 How to Save Maximum Tax without Investment
Tax is something that no one wants to pay, everyone wants to avoid and every time he keeps thinking about how we can avoid doing more and more । Because of being a responsible country citizen, we should pay taxes because the government runs the country only with this tax money । Tax savings are an important financial goal for many individuals in India. Everyone wants to save as much tax as possible and make the most of their hard-earned money. With the right planning and investment, one can save a substantial amount of money on taxes in 2023. There are some suggestions to save maximum tax without investment in India in 2023.
1. Use tax deduction: Tax deductions are available at certain expenses such as health insurance premiums, housing loan interest, donations for donations, etc. You can avail tax deduction on these expenses to a certain extent. Therefore, if you are eligible for deduction, be sure to take advantage of them to save taxes.
2. Invest in ELSS Mutual Fund: Equity Linked Savings Scheme ( ELSS ) Mutual Fund is a great way to save taxes without investment. ELSS funds are equity-oriented mutual funds that offer tax deductions of up to Rs 1.5 lakh under Section 80C of the Income Tax Act। These investments have a lock-in period of 3 years, and they offer potential capital appreciation in the long term.
3. Option for standard deduction: Under standard deduction, salaried persons and pensioners can avail flat deduction of Rs 50,000 from their taxable income. This is a great way to save taxes without investment.
4. Use HRA Exemption: If you are paying rent for your home, you can avail tax exemption under House Rent Allowance ( HRA ). The amount of HRA exemption you receive depends on the city in which you live, and can be up to 40% of your salary.
5. Invest in government backed bonds: If you are looking for tax savings without investment, you may consider investing in government backed bonds. These bonds offer tax deduction under Section 80C of the Income Tax Act and interest income is tax free.
6. Investment in NPS: National Pension Scheme ( NPS ) is a great way to save taxes without investment. You can invest up to Rs 1.5 lakh in NPS and avail tax benefit under Section 80C. Contributions and returns are also tax-free.
By following these tips, you can save maximum tax without investing in India in 2023. To understand the tax equations of these strategies, consult a financial advisor . With the right planning and investment, you can save significant amount on taxes.
Now all these things mentioned as above, we can know how to save more and more tax without investing in tax savings schemes , Now what are the ways by which you can save as much tax as possible by investing and saving.
These methods are available as equity linked savings schemes ( ELSS ), Public Provident Fund ( PPF ), National Pension Scheme ( NPS ), Life Insurance, Sukanya Samaridhi Scheme ( SSY ) and Senior Citizen Savings Scheme ( SCSS ).
1. Equity Linked Savings Scheme ( ELSS ): ELSS Mutual Fund is one of the most efficient tax-saving investments. ELSS funds are equity-oriented funds that invest in a diversified portfolio of stocks and bonds. Investors can claim tax deduction of up to Rs 1.5 lakh per financial year under Section 80C of the Income Tax Act। The lock-in period for ELSS funds is three years.
2. Public Provident Fund ( PPF ): PPF is a popular tax-saving investment option available in India. It is a long term savings scheme that offers an interest rate of 7.1% per year. The minimum investment amount is Rs 500। And the maximum amount is Rs 1.5 lakh per financial year. An investor can claim tax deduction of up to Rs 1.5 lakh under Section 80C of Income Tax Act for PPF investment.
3. National Pension Scheme ( NPS ): NPS is another tax-saving investment option. It is a long term retirement savings scheme in which the investor can invest up to Rs 50,000 per financial year and tax deduction up to Rs 1.5 lakh under Section 80C Can claim. Returns from NPS are linked to the market and taxes are levied according to the income tax slab rate applicable to the investor.
4. Life insurance: Life insurance is an important tax-saving investment option. An investor can claim tax deduction of up to Rs 1.5 lakh under Section 80C of Income Tax Act for life insurance premium. The maturity amount is also tax-free.
5. Sukanya Samaridhi Scheme ( SSY ): SSY is a government supported savings scheme for girls. It offers an interest rate of 8.5% per year. An investor can invest up to Rs 1.5 lakh in this scheme and claim tax deduction up to Rs 1.5 lakh under Section 80C of Income Tax Act.
6. Senior Citizen Savings Scheme ( SCSS ): SCSS is a tax-saving investment option available to seniors 60 years of age or older. An investor can invest up to Rs 15 lakh in this scheme and claim tax deduction up to Rs 1.5 lakh under Section 80C. The interest rate offered by this scheme is 8.6% per year.
By investing in these tax-saving instruments, an investor can save a significant amount of tax in 2023. It is important to take a professional advise take a advise form any finance professional to achieve long-term financial goals.
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