Taxes are inevitable but there are strategies you can use to protect your income from taxes. Know more how you can save tax with ICICIdirect through Tax-Saving Mutual Funds, National Pension Schemes, Life Insurance and Health Insurance.
Section 80C of the Income Tax Act, 1961 allows you to avail deductions of up to Rs. 150,000 in a financial year from your taxable income through investments in various eligible products like Life Insurance, NPS, ELSS, etc.
Equity Linked Savings Scheme
or ELSS is one of the most popular ways to save taxes u/s 80C. Equity Linked Saving Scheme or ELSS is a type of mutual fund scheme that invests in equity markets and hence provides higher potential to create wealth than
traditional tax saving options. By investing Rs 1.5 lakhs in ELSS Mutual Funds in a financial year, one can save taxes upto Rs 46,800. These funds also have lock-in of just 3 years (from the date of allotment of units),
lowest amongst all the options available u/s 80C.
Shorter Lock-in
Superior returns in the long term
Tax free up to gains of ₹1 lakh, Just 10% beyond ₹1 lakh
The National Pension System is rapidly growing in popularity among investors because of its all-round tax efficiency. NPS not only offers income deductions under 80C, but also allows an additional Rs 50k deductible under section 80CCD (1B). If you invest up to Rs 2 lakh in NPS or if you invest Rs 1.5 lakh in ELSS and Rs 50,000 in NPS, you can save up to Rs 62,400 in taxes.
The Ntional Pension System is rapidly growing in popularity among investors because of its all-round tax efficiency. NPS not only offers income deductions under 80C, but also allows an additional Rs 50k deductible under section 80CCD (1B). If you invest up to Rs 2 lakh in NPS or if you invest Rs 1.5 lakh in ELSS and Rs 50,000 in NPS, you can save up to Rs 62,400 in taxes.
Financial security for family
Premium are tax-deductible
Maturity benefits are tax-free
When you need medical attention the last thing you want to think about is cost. But good care is expensive – which is why you need adequate health coverage for yourself and your family. The rise of lifestyle diseases and pandemics pose new threats to our health. A health insurance policy gives you the peace of mind and financial security when you need it most. What’s more, it also helps you save tax on the premiums that you pay to cover yourself and your family.
Financial security during illness
Premiums are tax-deductible
Invest
