Investment is a smart way to secure your financial future while earning returns. Women can benefit significantly by exploring specific schemes that not only offer better returns but also help save on income tax. Here's a look at four effective options:

1. Post Office MIS (Monthly Income Scheme)

This post office scheme requires a one-time lump sum investment and provides interest payouts monthly. The principal amount is returned after 5 years.

• Interest Rate: 7.4% annually
• Deposit Limits:
  • ₹9,00,000 for a single account
  • ₹15,00,000 for a joint account

If you open a joint account with your wife, you can deposit a higher amount and earn more returns. For instance:

• ₹9,00,000 deposit earns ₹5,550/month.
• ₹15,00,000 deposit earns ₹9,250/month (joint account).

2. Fixed Deposits (FDs)

FDs with tenures under 5 years are taxable if the interest exceeds ₹40,000 annually. Here’s how to save taxes with your wife’s help:

• If your wife is a housewife or in a lower tax bracket, get an FD in her name to avoid TDS deductions.
• By submitting Form 15G, she can claim exemption.
• Opt for joint FDs with your wife as the primary holder for additional benefits.

3. Joint Home Loans

Home loans are considered "good loans" as they help you invest in property, which appreciates over time. If you apply jointly with your wife:

• Lower Interest Rates: Female co-applicants get 0.05% lower interest rates.
• Higher Loan Limit: If both spouses earn, the loan eligibility increases.

Tax Benefits on Joint Home Loans

By taking a joint home loan, both applicants can claim individual tax benefits:

• ₹1.5 lakh each on the principal amount under Section 80C (total ₹3 lakh).
• ₹2 lakh each on interest payments under Section 24B (total ₹4 lakh).
  This provides a combined tax benefit of up to ₹7 lakh annually.

4. Public Provident Fund (PPF)

PPF is ideal for long-term savings with tax benefits. While joint accounts aren’t allowed, both spouses can open separate accounts to double their investment:

• Deposit Limit: ₹1.5 lakh per account annually
• Interest Rate: 7.1%

Tax Benefits:

• Under Section 80C, the investment qualifies for tax deductions.
• PPF falls under the E-E-E (Exempt-Exempt-Exempt) category, meaning the investment, interest, and maturity amounts are all tax-free.

Conclusion

By utilizing these investment schemes, women can earn better returns and enjoy substantial tax savings. Including your spouse in these investments can further maximize benefits, ensuring a secure and profitable future.