Few days are left to save income tax: In this financial year (2019-20), now you have only a few days left for tax saving. If before 31 March 2020 you should take all your tax saving investments.
NPS is a great option for new or old tax slabs. You can invest Rs 50,000 separately in National Pension Scheme (NPS) under section 80CCD (1b) to get the most out of your tax deduction benefit, but remember that NPS has to be invested for a very long time. . Therefore, invest in NPS only if you do not have immediate need for the money to be invested and if it suits your retirement goals.
EPF is a very safe means
Employees’ Provident Fund may be an attractive option if you are at the risk of investment while planning a tax saving investment at the last minute. EPF is a very safe instrument currently earning interest at the rate of 8.6% per annum, which is much higher than the interest available on many popular tax saving products such as public provident funds. You can get Rs 1.5 lakh under Section 80C of the Income Tax Act. You can invest the remaining amount in it to take full advantage of the tax deduction benefit.
More investment than the minimum investment limit under EPF can be done by investing in Voluntary Provident Fund (VPF). Both EPF and VPF get the same return benefit. In addition, the investment in EPF / VPF falls under the EEE category in terms of taxation, that is to say, the amount to be invested in it, the interest received and the return amount at the time of maturity, all three But there is no tax. Apart from this, you can invest up to 100% of your basic salary and dearness allowance in VPF.
One thing to keep in mind that EPF Amount has only special needs before retirement such as being unemployed for a long time, own, your children’s or brother / sister’s marriage, your or children’s higher education, building a house, a medical emergency, etc. Can be removed for if you meet other terms and conditions.