New Delhi, March 9: As the financial year draws to a close, individuals planning their tax strategies have a prime opportunity this month to invest in the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), and National Pension System (NPS) for both future savings and tax benefits.
Investing in PPF allows for easy tax savings. Under the old tax regime, taxpayers can claim tax deductions of up to ₹1.5 lakh under Section 80C of the Income Tax Act, 1961. However, this benefit is not available under the new tax regime. If you haven’t made any investments in PPF this financial year, now is a good time to start.
Additionally, to keep a PPF account active, a minimum annual investment of ₹500 is required. Failing to invest this amount in a financial year may lead to the account becoming inactive.
The Sukanya Samriddhi Yojana can also aid in tax planning. However, this scheme is only available to parents of daughters. Under the old tax regime, investments up to ₹1.5 lakh can also be claimed as tax deductions under Section 80C. To maintain the account, a minimum investment of ₹250 per financial year is necessary.
NPS can further assist in tax savings. Under the old tax regime, investments in NPS allow for tax deductions of up to ₹1.5 lakh under Section 80C. Additionally, contributions made under Section 80CCD(1B) can provide an extra tax deduction of ₹50,000.
Under the new tax regime, employees can benefit from tax deductions on employer contributions to NPS, which can be up to 14% of the employee’s basic salary and dearness allowance (DA). According to NPS rules, each individual must deposit a minimum of ₹1,000 per financial year.
–
Agency
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
