Tax saving ideas: Use these 6 financial, banking instruments to save taxes
Under Section 80C and other provisions of the Income Tax Act, there are a number of ways for taxpayers to reduce their tax obligations. These investments provide you the chance to build wealth in addition to lowering your taxed income.
How to switch from new tax regime to old tax regime for FY23-24
What is Section 80C?
According to the Indian Bank website, “Section 80C is one of the section in Income Tax Act, 1961 which allows taxpayers to claim deductions on their taxable income by investing in deposit schemes and expenditures. As of the current regulations, you can claim deductions of up to Rs. 1.5 lakh in a fiscal year under this provision. It’s important to note that the Rs. 1.5 lakh limit applies cumulatively to all the eligible investments and expenses under Section 80C.” This tax benefit is only available to those who select the old tax regime; those who opt for the new tax regime cannot avail this tax benefit.
Investors looking for twin engines of quality and growth.
With an emphasis on banking products, below are some financial instruments which can be used as investment and tax saving purpose, according to the Indian Bank website.
1 Tax Saving Fixed Deposits (FDs)
One easy approach to save taxes is through bank fixed deposits. They have different tenures and interest rates, and they provide tax deductions under Section 80C. These are a well-liked option for anyone seeking a secure and certain return on their money.
Lock-in Period: Tax-saving FDs come with a lock-in period of 5 years, which means your
