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Are there any tax benefits to saving money?

Curious about savings

Are there any tax benefits to saving money?

Yes, there are tax benefits to saving money. In India, some of the popular taxsaving options include:

1. Public Provident Fund (PPF): PPF is a longterm savings scheme that offers tax benefits under Section 80C of the Income Tax Act. The interest earned and the maturity amount are also taxfree.

2. EquityLinked Savings Scheme (ELSS): ELSS is a taxsaving mutual fund that also offers tax benefits under Section 80C. The investment in ELSS has a lockin period of three years.

3. National Pension System (NPS): NPS is a retirement savings scheme that offers tax benefits under Section 80CCD of the Income Tax Act. The investment in NPS also qualifies for an additional tax benefit of up to Rs 50,000 under Section 80CCD(1B).

4. Taxsaving Fixed Deposits (FD): Taxsaving FD is a fixed deposit scheme that offers tax benefits under Section 80C. The investment in taxsaving FD has a lockin period of five years.

5. Sukanya Samriddhi Yojana (SSY): SSY is a savings scheme for the girl child that offers tax benefits under Section 80C. The investment in SSY has a lockin period of 21 years or until the girl child turns 18.

It is important to note that the tax benefits of these schemes are subject to change as per the government's policies. It is always advisable to consult a financial advisor before making any investment decision.

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