How to save tax? What is the best investment option: Read here

How to save tax? What is the best investment option: Read here

In this financial year (2019-20), you now have a few days left for tax saving. If you should invest all your tax savings before March 31, 2020. NPS is an excellent option for new or old tax slabs. You can invest Rs 50,000 separately in the National Pension Scheme (NPS) under section 80CCD (1b) to get the maximum benefit of your tax reduction benefit, but remember that NPS has to invest for a very long time. So, invest in NPS only if you don't need the money to invest in immediately and if it suits your retirement goal.

EPF a very safe way

If at the end of the time, planning a tax saving investment, the risk associated with investment is a major concern for you, the Employees' Provident Fund can be an attractive option for you. EPF is a very safe tool that currently receives interest at the rate of 8.6% per annum, which is much higher than the interest on many popular tax-saving products such as public provident funds. Rs 1.5 lakh available under Section 80C of the income tax act. To take full advantage of the tax reduction benefit, you can invest the remaining unmount. Under EPF, an investment beyond the minimum investment limit can be made by invest in the Voluntary Provident Fund (VPF). Both EPF and VPF get the same return benefit. Also, the investment in EPF/VPF falls under the EEE category in terms of taxation, which means that it does not attract tax on all three of the unmount, the interest to be invested in it, and then return at the time of maturity. In addition, you can invest up to 100% of your basic salary and dearness allowance in VPF.

One thing to keep in mind is that EPF amount is the only particular need before retirement, such as being unemployed for a long time, your own, your children, or your brother/sister's marriage, children's higher education, home building, any medical emergency, etc. can be withdrawn. If you fulfill other terms and conditions.

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