Tax360 is a comprehensive tax management software that can greatly assist individuals in optimizing their tax-saving investments and overall tax planning. Here's how Tax360 can help individuals in relation to the topic of tax-saving investments: Investment Tracking: Tax360 allows users to track their various tax-saving investments in one centralized platform. Users can input details about their EPF, PPF, ELSS, NPS, tax-saving fixed deposits, and tax-saving bonds, including contribution amounts, investment periods, and interest rates. This helps individuals maintain a clear overview of their investments and ensures that they stay on top of their tax-saving goals.
The Employee Provident Fund is a popular tax-saving investment option for salaried individuals. By contributing a portion of your salary towards EPF, you not only build a retirement corpus but also enjoy tax benefits under Section 80C of the Income Tax Act.
The Public Provident Fund is a long-term investment scheme backed by the government. It offers attractive interest rates and allows individuals to claim deductions under Section 80C. PPF is known for its safety, stability, and tax-free returns.
ELSS is a tax-saving mutual fund that invests primarily in equities. It combines the potential for higher returns with the benefit of tax savings. ELSS investments qualify for deductions under Section 80C and have a lock-in period of three years. National Pension System (NPS): The National Pension System is a voluntary pension scheme that provides individuals with an opportunity to build a retirement corpus. Contributions made towards NPS are eligible for tax benefits under Section 80CCD(1B), over and above the benefits available under Section 80C.
Many banks offer tax-saving fixed deposit schemes with a lock-in period of five years. These deposits qualify for deductions under Section 80C. While they offer fixed returns, they are a relatively low-risk investment option.
Government-issued tax-saving bonds are another avenue for individuals to save taxes. These bonds usually have a lock-in period of five years and offer fixed returns. Interest earned on these bonds is taxable, but they provide the benefit of tax deductions under Section 80CCF.