Calculate your potential tax savings from various investment options and plan your investments accordingly
Tax-saving investments are financial instruments that offer deductions under various sections of the Income Tax Act. These investments help reduce your taxable income while building wealth for the future.
The maximum deduction allowed under Section 80C is ₹1.5 lakh per financial year. This includes various investments and expenses like PPF, ELSS, life insurance premiums, home loan principal repayment, etc.
Among tax-saving investments, Equity Linked Saving Schemes (ELSS) generally offer the highest potential returns as they invest in equities. However, they also come with higher risk compared to other options like PPF or tax-saving FDs.
No, you cannot claim deductions for investments made in your spouse's name. However, if the investment is made from your spouse's income, they can claim the deduction in their tax return.
For most tax-saving investments, the last date is March 31st of the financial year. However, some investments like PPF allow contributions until the 5th of April. It's advisable to complete your investments well before the deadline to avoid last-minute rush.