This is the era where financial tools are many. One requires to take extremely witty decisions to attain financial stability. Well, when we talk of financial stability, tax-saving comes up as one of the most prominent discussions of the time. You might have searched for the right tax-saving plans to get rid of the added pressure of paying lump sums of the hard-earned money. Encounter the top tax-saving plans and choose the right one to opt to enjoy the fringe benefits:
- ELSS Funds:
These are the equity funds and have a lock-in period of 3 years. This is eligible for an observable tax-deduction.
- National Savings Certificate:
This financial tool is safe and small and combines the saving scheme with guaranteed returns. This has a maximum of five years of tenure.
- Public Provident Fund:
This is the scheme that matures after a minimum tenure of 15 years. The tenure can be elongated more five years.
- Unit Linked Insurance Plan:
These are the hybrid products that are a blend of life insurance and investments. Like the insurances, this scheme also covers lives along with the investment. This even offers a concession on the tax on the savings. 12 deposits at maximum are allowed for the people each financial year.
- Sukanya Smridhi Yojna:
This is a small scheme that is tax-free and is to benefit the girl child. This scheme was launched in January of the year 2015. The parents or the guardian of a girl child of 10 years or more can open their accounts in the post. This plan brings out great results once the girl turns 18.
- National Pension System:
This is the initiative of the Government of India so that all the Indian citizens can enjoy pension. The central and the state government employees mandatorily put their investments in NPC. As [r the further plans of the Government, the employees of the private sectors will be given choice to put their investments in EPFO (abbreviating of employees provident fund organization) and NPS. The contribution of the employee is fixed at 10% of the Basic salary pay.
The feeling of financial stability is not a big deal to attain but what it takes are awareness and thoughtful decisions. In a hurry, we tend to commit mistakes which later on turn out to be a blunder for us. Using the schemes rightly makes it quite easier for people to strike the right balance in their lives.