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Budget 2018: Keep these 10 important things in mind to save tax

Speed News Desk | Updated on: 1 February 2018, 13:14 IST
Budget 2018

People are expecting more from the finance minister Arun Jaitley in the general budget announced today whether to give relief on the tax front or not. But if you want to save the cost of tax fare, then you have many options. These choices not only create a habit of saving but also save your money spent on tax.

Next we are telling you about 10 similar schemes, in which if you invest money, you will have double benefit. These schemes not only give good interest and returns on your savings, but also save your money that are spent on tax.

All these schemes come under Section 80C. Under this, you get a tax rebate of up to Rs 1.5 lakh. Earlier, there was a demand for this limit to be made upto Rs 2 lakh in this budget but according to the current exemption, you can save up to Rs 1.5 lakh.

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If you earn up to Rs 5 lakh annually From this, invest 1.5 lakhs in those schemes which fall under section 80C. By doing so, you only have to pay tax on income of Rs 3.5 lakh.

Section 8 of the Income Tax Act is an important section for tax payers. Some schemes of investment and savings have been included under this. You get tax rebate on these schemes.

If you want to invest under Section 80C, you can save up to Rs 1.5 lakh in the current tax. Under this scheme, you can invest in many schemes. These are:

Equity Linked Savings Scheme (ELSS): These tax savings are mutual funds.

- Public Provident Fund (PPF)

- Tax Savings Fixed Deposit: These are those FDs, whose lock in period is of 5 years.

- National Pension System (NPS)

- Sukanya Samriddhi scheme

- Unit Linked Insurance Plan (ULIP)

- National Savings Certificate (NSC)

- Home loan

- life insurance

- Pension funds and others

First published: 1 February 2018, 12:53 IST