7 finest tax-saving solutions which can save your money

As the month of March is to end, this is the last opportunity to save tax for this financial year.

Fortunately, there are different tools available in the market which can save on taxes. However one can invest in these instruments on their own risk capacity. To become an intelligent tax saver, an individual needs to think beyond tax saving, he should always invest keeping in mind a certain financial aim.

Below are seven finest tax-saving solutions that will not just save on your taxes but also will help to meet your financial goals:

Public Provident Fund:
The PPF account can be opened in a post office or any registered bank. If a person invests in PPF, the amount contributed, interest earnings and maturity amount-all are exempted from tax. With its EEE facility, it is known as one of best tax-saving options. The maturity period of this instrument is 15 years, which can be extended further for 5 years. This instrument is known as best if one is planning for retirement.
 
Senior Citizen Savings Scheme:
This Scheme’s name itself indicates that a person above age of 60 can open this account, in case of those who are on superannuation or on VRS, age relaxation is provided, which can allow a person to open an account at the age of 55 years. The tax-benefits towards investments made under this scheme can be claimed under 80C, for which the lock-in period is 5 years. In this scheme the interest is paid quarterly.
 
 
Equity Linked Savings Scheme:
People who invest in this scheme can save tax up to Rs. 1.5 Lakh under income-tax act 80C. The long-term capital gains that are being made through this are tax exempted. This Scheme provides the maximum returns as compared with the other ones. Market and economic situations are vital in this as returns are market-linked
 
Fixed Deposits:
Fixed deposit is most commonly used investment option to get the tax benefits. In a certain financial year, you may get a tax deduction of Rs.1.5 lakh under 80C. This option is mostly used by the individuals who wants secure returns with low risk factors. It has lock-in period of 5 years.
 
Term Deposit:
In this scheme, the fund invested for 5 year is only eligible for deductions under 80C of Income-tax Act. However, there is no restriction to open a term deposit account, which can be transferred from one post office to another as and when needed. An individual can deposit the funds in term deposit account with no limitation.
 
National Pension Scheme:
If a person contributes in his NPS scheme, he becomes eligible to get an additional income tax benefit of Rs. 50,000 under Income tax act. However, the investment must be made in Tier I account of NPS only. There is no limit to invest in NPS account.
 
Health Insurance:
This is one of the prime schemes which helps an individual to get rid of tax burden upto some extent. Under section 80D of the Income Tax Act, benefits can be claimed. This section explains, deductions are made towards such policies on self and family members whether dependent or not. The maximum deduction of Rs. 60000 and minimum of Rs. 25000 can be made under this section.