There is just one month remaining before the financial year 2023–24 ends on March 31, 2024, to preserve taxes for deduction in March 2024 and to request a refund of any taxes previously withheld from salary in January or February. Here are the best investment plans that save taxes under sections 80C and 80D before March 31st.
The Public Provident Fund
The Public Provident Fund is an additional top investing choice, wisest choice to invest for other long-term objectives, such as a child's education or the purchase of a house. Investing from the standpoint of retirement, where one may receive annual tax benefits of up to one lakh, is another option.
Tax Saver Health Insurance
Getting health insurance will not only save loved ones money on future medical bills, but it will also enable to take advantage of section 80D tax savings. One can claim an exemption of up to one million dollars using it as well as be able to avoid taxes under section 80C with life insurance.
In addition, one can obtain a health insurance coverage for elderly parents and, as a senior citizen, claim a 50,000 annual tax reduction under Section 80D of the Income Tax Act.
Account for Sukanya Samridhi Yojana
The Sukanya Samridhi Yojana account is primarily intended for individuals who wish to start saving early for their daughter. The Income Tax Act states that investments made under the SSY plan are not deductible up to a total of 1.5 lakh. Section 80C allows for the deduction of SSY interests. It's a wise investing strategy, particularly if you want to increase your savings for your daughter's college once she turns 18.
Fixed Deposits
All investors favor fixed deposits as their go-to tax-saving choice for long-term returns. With FDs, one may begin investing with a small sum and enjoy the benefits of compound interest over time. Section 80C of the IT Act allows one to receive benefits and not pay taxes on the invested money, interest earned, or maturity amount.
The National Pension Scheme
The government-sponsored National Pension System allows taxpayers to invest and save systematically for long-term advantages. It is covered by IT Act Section 80CCB. Under the plan, you may also increase the amount of money you can deduct from taxes by an extra $50,000.
