5 Easy Ways To Get Tax Benefit Under Section 80c In India (F.Y 22-23)(OLD tax Structure)


Indian tax structure is one of the most complicated tax structures in the world, so here we will try to explain you all in the most easy simple manner to help you save your hard earned money by guiding you in how you can save tax on 80c investment options.

Taxation Starts From Above 2.5L on your yearly Income…

The Employees are subjected to taxation  based on their salary structure. So when an employee earns more than 2.5L in salary in a year, he/she is required to pay income tax to Indian government. According to Indian Tax system under the section 80C(Financial year 2018-19), an Employee can save up to 1.50 lac’s to save tax.

There are various different beneficiaries schemes covered under Section 80 C, which can help you save your hard earned income easily and make you wealthier over many years of accumulated wealth. 

Simple easy terms to help you know about Saving Taxes-  

There are many sections, and most commonly known section to all employees is section 80C. This section will provide you cover of 1.5L.

A SIMPLE CALCULATION For The First Timers Trying To Understand 80C Section & Indian Taxation System – 

Suppose If a employee earns 4 L a year in Salary. So he/she will be excepted by uptill 2.5L and remaining 1.5 L he/she can cover in Section 80C. Thus covering an entire amount of 4L. This way Employee is liable to pay no Income Tax.

Here are the 5 ways to get tax benefit under 80c section, do investments & savings :

1) Take NSC  for minimum 5 years

NSC stands for National saving certificates, NSC save you from paying excess tax. They provide you with an interest rates of up to 7.6%. The interest returned back from this saving will be taxable when you withdraw your total amount after 5 years. Minimum tenure for getting eligible for tax saving under section 80 C is 5 years. Also if you do NSC saving for 10 years, you get little higher interest rates.

NSC certificates can be easily made from the post offices and you can make 1.50 lac’s certificate to save your self from the entire possible exemption possible under section 80 C.

2) Tax saving Fixed deposit

Many banks provide many different schemes for saving tax in form of saving in tax saving fixed deposit, the minimum tenure necessary is 5 years. You can get interest rates ranging from 6% up till 7.15% depending upon various banks. You can put up to 1.50 lac’s in fixed deposit for saving your tax. 

3) Invest in Mutual Funds

Many different banks have different beneficiaries schemes for Wealth growth by investments in Mutual Funds. Investments in the mutual Funds are required for minimum of 3 years for getting tax benefit. You can hire an financial adviser you can put your investments into various different sectors according to the best market conditions.

Mutual Funds does not guarantee fix income returns, it can give you returns from as low as 4% to as high as 25 % depending upon the overall market growth and the financial status of the markets. As this involves investments in various sectors by your agent/financial adviser, so it have medium financial risk factor associated with it which does not guarantee you a fixed confirm returns after a tenure of 5 years.

4) Public Provident Fund (PPF)

This scheme is the most popular among middle class as it gives good returns of around 8.7% compound interest and what gives PPF an edge from others is that the interest income is tax-free.

Minumum period required to put money is for 15 years and extendable. Withdrawals are only allowed after 7 years and that too around 25% of the amount.   

5) Life insurance policy ( LIC )

Life insurance corporation of India has various schemes and policies to save from the excess taxation under section 80c. Any amount that you pay towards life insurance premium for yourself, your spouse or your children can also be included in Section 80C deduction, but if you pay premium paid by you for your parents (father / mother / both) or your in-laws is not eligible for deduction under section 80C.

If you are paying premium for more than one insurance policy, all the premiums can be included. 

Do these simple easy tips to get tax benefit under 80c, to grow your wealth over the years easily…!! 

tips-save-tax-benefit-under-80c-investment-options-salary-indiaSaving tax up to 1.50 lac’s is easy, so try the above suggested various options to get the best returns from your hard earned money in the form of interest back after many years.

Share this with your friends/family looking to know about tax saving as per the financial year 2020-2021 in Easy & Simple Manner.

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