Due to Coronavirus, the government
has extended the deadline for tax-savings investment till June 30. In such a
situation, if you have not invested anywhere yet, then you can take advantage
of tax exemption on investing in PPF or ELSS. If you choose the old tax system,
then tax rebate of up to 1.5 lakh rupees can be taken under 80C through
investment in these schemes. We are telling you about both these schemes.
Highlights of PPF
This scheme can be opened anywhere in
the bank or post office. Apart from this, it can also be transferred to any
bank or any post office. If it is opened, then it can only go from 100 rupees,
but then later it is necessary to deposit 500 rupees at a time. Maximum 1.5
lakh rupees can be deposited in this account every year. This scheme is for 15
years, from which it cannot be withdrawn. But it can be extended for 5-5 years
after 15 years. It cannot be closed before 15 years, but after 3 years, a loan
can be taken against this account. If anyone wants, he can withdraw money from
this account from 7th year under rules. The government reviews the interest
rates every three months. These interest rates can be more or less. At present,
the account is getting a 7.1 per cent interest.
Highlights of ELSS
There are 42 mutual fund companies in
the country that run tax saving schemes. Every company has ELSS to save income
tax. It can be purchased online at home or through an agent. In order to save
income tax, if you have to invest at one time, then usually a minimum
investment of Rs 5000 and if you have to invest every month, then usually a
minimum investment of Rs 500 a month can be started. Although a maximum tax
exemption of Rs 1.5 lakh can be taken, there is no limit to the maximum
investment. Investment in this income tax saving scheme is locked in for 3
years. After this, the investor can withdraw this money if he wants. After
three years, withdraw the entire amount if you want or withdraw as much money
as you need and leave the remaining money in this ELSS for as long as you want.
ELSS is only locked in for 3 years, but if the investor takes the option of
dividend payout, then they will continue to get money in between. However,
income tax-saving ELSS scheme cannot be withdrawn in between. In this, the
market link returns instead of the interest rate on investment. In the last 10
years, the ELSS Mutual Fund category has given a return of about 8.46%.
Income tax can be saved by investing
in both places. Apart from this, both schemes have their own specialities and
drawbacks. In such a situation, if someone wants to take a little risk in
saving income tax, ELSS is a better option for them. Money should be invested
through SIP, which is invested every month. This reduces the risk of investment
and also increases the chances of getting good returns. On the other hand, if
you want to stay away from the risk of the market, then investing in PPF is
right. Both are common in some of the best tax saving schemes. The first is
that the maximum income tax can be saved by investing a maximum of Rs 1.5 lakh
in both. Also, both schemes cannot be closed in between. It is a different
matter that money in PPF can be withdrawn after 15 years, money in ELSS can be
withdrawn only after 3 years.
Posts
.webp)
No comments: