Taxpaying rules: As the new financial year starts and the time for paying income tax comes closer, people start looking for ways to take advantage of tax savings (benefits of the new tax regime). After a lot of brainstorming on this, some part of the tax is saved, but the methods we are talking about here will save you as much tax as possible.

Also, you will not have to face any problems like tax notices in the future regarding the tax saved by these methods. These measures not only give you relief in tax (tax exemption rules) but can also reduce your expenses. Let's know about these best ways to save tax.

Save tax by investing in a pension plan -

Now some changes have been made in the tax rules. Under the new tax regime, there will be no tax up to an income of Rs 12 lakh. However, there will be no relief on investment in it. The benefit of tax exemption on investment is available only to those who pay tax under the old rules (Old Tax regime). Now most people are paying tax according to the new rules, but many people follow the old way. If you pay taxes in the old way and are looking for good investment options to save tax, then this information can be beneficial for you. To save tax, you have to choose some specific schemes (Tax Saving Investment Schemes) that are applicable under the old system.

Tax Saving by Investing in Bank FD -

If you deposit money in Bank FD for a fixed period of a minimum of 5 years, then you can get tax relief under Section 80C of the Income Tax Act, 1961. Under the Bank FD scheme, you can save tax by tax deduction on FD up to the prescribed limit of Rs 1.5 lakh every year by reducing your taxable income. This investment helps in reducing taxes as well as meeting your financial goals. Once you use this option, you will not only get the opportunity to increase your savings, but also get tax benefits.

Benefits of Pension Plan -

By investing in some schemes, you can save tax. Among these, there is a special type of scheme called Pension Plan in which tax relief can be given on paying the premium. This type of investment can reduce your taxable income, which gives the benefit of saving tax, and under Section 80CCC of Income Tax Act, 1961, you get the benefit of tax deduction up to Rs 1.5 lakh. Apart from this, it also prepares you for a secure future, giving you savings and financial security in the long term.

Investment in ULIP scheme -

There is a special type of scheme called Unit Linked Insurance Plan, in which tax can be saved by investing. In this, tax exemption is available on the premium, which gives you some savings every year. This option not only provides financial security but also provides an opportunity to save up to 1.5 lakh tax (ULIP tax benefits). Through this, you can increase your savings and take advantage of reducing the tax rate.

Benefits of investing in ELSS Mutual Funds -

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Many investment companies provide an opportunity to invest in special schemes, which remain in a lock-in period for a fixed period of 3 years. The money invested in these schemes can get tax relief (ELSS Mutual Funds benefits) under section 80C of the Income Tax Act, 1961. Through this you can reduce your income and reduce tax.

By taking advantage of this type of investment plan, you get a chance to save for a long time. Along with this, you also have the possibility of saving taxes (tax saving tips), which makes financial management easier.

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