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Tax saving investments: Under section 80c of income tax, you can also save your tax (tax saving schemes) if you want.
Tax saving investments: If your income tax is in the scope of the slab, then obviously you have to pay income tax accordingly. In such a situation, any person wants to save some of his tax or get some exemption in it. Under section 80c of income tax, if you want, you can also save your tax (tax saving schemes). According to HDFC Securities, if you invest smartly in the right option then you get income tax saving. If you have not invested in such options till now, then let us understand here how these options prove to be helpful.
Health insurance also helps in tax saving
You can take advantage of tax savings by investing in a health insurance plan. As per section 80D of the Income Tax Act, 1961, premiums paid for health insurance are eligible for tax exemption. Health insurance can include indemnity plans or fixed benefit plans or both. If you want, you can also save tax by investing in term insurance riders. Term insurance riders include partial and permanent disability rider, hospital cash rider and accidental death rider etc. Under Section 80D, tax exemption up to a maximum of Rs 75,000 can be claimed. This will include Rs 25,000 for health insurance policy purchased for spouse and children other than self and Rs 25,000 for health insurance purchased for parents. If your parents fall in the category of senior citizens, then you are 50,
Unit linked insurance plan will also provide savings
Tax can be saved by investing in ULIP (Unit Linked Insurance Plan) under Section 80C and 10(10D) of the Income Tax Act, 1961. A ULIP plan can be for 15 to 20 years but initially has a lock-in period of 5 years. Under section 80C, the maximum limit is Rs 1.5 lakh per annum. Out of this policy, after 5 years or at the time of maturity, its fund value is also tax free. Changes in the fund options of the policy are also tax free.
Life insurance policy
Tax saving investment u/s 80 C can be availed in lieu of life insurance policy under section 80C. The exemption limit in this is Rs 1.5 lakh. Not only this, apart from your own policy, you can also claim tax benefits on premiums paid for parents, spouse and children’s policies. The premium for policies purchased before April 1, 2012, cannot exceed 20% of the sum assured to get tax benefits. Whereas, for policies purchased after April 1, 2012, the premium amount cannot exceed 10 percent of the sum assured.