9) Sukanya Samriddhi Account Scheme
The Sukanya Samriddhi Yojana is as girl child prosperity scheme under Beti Bachao Beti Padhao program of Prime Minister Narendra Modi. It is one of the Best Tax Saving Methods. SSY account is to ensure a bright future for girl children in India. This yojana is to facilitate them proper education and carefree marriage expenses. The scheme has well been accepted by the masses in wake of the financial security and independence it would provide to the girl child as well as their parents and guardians.
Tax Benefits: IT benefits u/s 80C
upto Rs 1.5 Lakhs per annum. Returns 8.6%..
10) Tax Saver Term (FD) Deposits
The original monetary amount, which the depositor deposits in the FD, is exempt from taxation, under the Section 80C of the Income Tax Act. FDs are a widely used tax saving option by both salary earning individuals and workers, and the business persons. The section offers an exemption of up to Rs 1.5 lakhs. towards an FD deposit.
11) Interest on Home Loan
If you have taken a home loan, then you are eligible to get tax benefit on home loan interest up to Rs 2 Lakhs under Section 24. If you are paying a higher amount, you are eligible to get the maximum of Rs 2 Lakhs only. The precondition is that this should be self occupied property.
You cannot claim this for a home loan where you have given your home for rent. This one of the good tax saving investments for home buyers.
12) National Saving Certificate (NSC)
It is a popular and safe small savings instrument and is one of the Best Tax Saving Methods that combines tax savings with guaranteed returns. This scheme is by the government and is available at post offices. The distribution reach of India Post has made it a popular one. The main objective of investing in the NSC is to get the tax deduction on deposits and guaranteed returns on investment.
13) Senior Citizens Saving Scheme
An SCSS account can be opened by an individual who is above the age of 60. Any individual, who has opted for a voluntary retirement scheme or retired between the age group 55 and 60 years, can opt for this scheme within one month of retirement. For defence personnel, the retirement restriction has been brought down to 50 years or more. The above features make it a relevant choice in Best Tax Saving Methods.
Tax Benefits: IT benefits u/s 80C upto Rs.50000 Returns 8.7%..
14) Health Insurance Tax Saving Investments
Some of you might not agree with a health insurance plan being among a tax saving investments option, as it offers no perky returns like the other forms of investment. But, might we mention, the value you get from health insurance coverage makes it much more worth than any other form of investment.
As per section 80D, you get to enjoy a tax deduction on the premium that you pay for the health insurance plan which makes it one of the Best Tax Saving Methods. The upper cap for this deduction is Rs 15,000 and is extendible up to Rs 20,000 for senior citizens. So, if a person gets a health plan for himself and for his parents, he can enjoy a deduction of up to Rs 35,000 on his taxable income. However, section 80D is not applicable to the group health insurance given by your employer. If you have opted for a personal accident rider with your health plan, the lump sum paid, in case the insured suffers a disability, is not taxable.
15) Money Back Plans
The name suggests, a money-back policy is one of the Best Tax Saving Methods which gives money-back at regular intervals. This money-back is paid during the plan tenure and is a percentage of the Sum Assured. Money-back pay-outs are Survival Benefits. These benefits are paid during the plan tenure and on maturity, the remaining Sum Assured is paid along with vested bonuses. However, if the insured dies during the plan tenure, the full Sum Assured is paid irrespective of the Survival Benefits already paid. This is what makes the plan unique.