As tax season approaches, individuals seek efficient ways to both save on taxes and earn substantial returns. Fortunately, the government offers several lucrative options designed to help you achieve both objectives. Explore the following government-backed investment schemes for guaranteed returns and tax-saving benefits.
- Senior Citizen Saving Scheme (SCSS):
- Specifically tailored for senior citizens above 60 years.
- Available for those aged 55 and above who have retired.
- Former military personnel above 50 years can also participate.
- Earn a competitive interest rate of 8.20% on deposits ranging from Rs 1000 to Rs 30 lakh.
- Enjoy tax exemption up to Rs 1.50 lakh under Section 80C.
- Public Provident Fund (PPF):
- Widely available in post offices and banks across India.
- A preferred choice for long-term investment, maturing after 15 years.
- Offers a tax-free interest rate of 7.1%, falling under the EEE category.
- Complete tax exemption on investment, interest, and maturity amount.
- Avail tax benefits up to Rs 1.5 lakh annually under Section 80C.
- Sukanya Samriddhi Yojana (SSY):
- A government-backed savings scheme designed for securing a daughter’s future.
- Earn a competitive interest rate of 8.1%.
- Invest Rs 250 to Rs 1.5 lakh per financial year for 15 years.
- Open accounts for up to two daughters.
- Enjoy tax exemption up to Rs 1.5 lakh annually under Section 80C.
- National Pension Scheme (NPS):
- Tailored for employed individuals planning for retirement.
- Receive a fixed monthly amount post-retirement.
- Benefit from a tax rebate of Rs 50,000 under Sections 80C and 80CCD (1B).
- Withdraw up to 60% of the NPS account balance.
- The remaining 40% is invested in debt funds, providing a monthly pension.
Explore these investment schemes to maximize your returns and optimize tax savings. Each scheme offers unique features catering to specific financial goals and needs.
