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Money Matters

Tax Saving Investment 2020-21 |Best Tax Saving Investment Options | YES BANK

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Paying taxes is your duty, but it also pinches your pocket immensely. However, the government allows you to minimise your tax burden by choosing the right tax-saving options. The more taxes you save, the more savings you have by the end of a year. So, it is advisable to identify the best tax-saving investments and choose one that fits your financial goals.

Some of the best tax-saving options for you:

  1. Fixed Deposits (FDs): If you want security along with attractive interest earnings, consider investing in an FD with a trusted bank. FDs allow you to securely place your funds with the issuer for a specified period and earn interest thereon. Specially-designed tax-saving FDs allow you to claim tax exemption under Section 80C. For a five-year tax-saving FD, you can claim an exclusion for up to ₹1.5 lakhs.

  2. Public Provident Fund (PPF): A PPF is a secure tax-saving investment that offers guaranteed returns. PPF Investments up to ₹1.5 lakh are eligible for tax exemption under Section 80C. You can open a PPF account at the nearest post office branch or an authorised public and private bank division. 

  3. Equity-Linked Saving Schemes (ELSS):  ELSS are diversified mutual funds with multiple benefits, including tax savings. Under Section 80C, you can claim a tax deduction for ELSS investments made up to ₹1.5 lakhs annually. Further, the ELSS gains up to ₹1 lakh are tax-free. Moreover, continuous harvesting of these proceeds can help you avoid more obligation on long-term capital gains. 

  4. Unit Linked Insurance Plan (ULIP):  ULIPs offer a safe combination of insurance and investment. A minor share of ULIP funds is used for insurance, and the remaining is invested in mutual funds. ULIP premiums, less than 10% of the sum assured, are qualified for tax exemption up to ₹1. 5 lakhs under Section 80C.

  5. National Savings Certificate (NSC): NSC is a fixed income, tax-saving investment, available at Indian post offices. This government-backed scheme also provides tax benefits. NSC deposits up to Rs. 1.5 lakhs are excused from tax under Section 80C. There is no upper limit for NSC savings, and no TDS is applicable on the NSC interest earnings.

  6. Senior Citizen Savings Scheme (SCSS): SCSS is a government-backed scheme, available for anyone over 60 years in age. SCSS has a five-year lock-in period, which can be extended further by three years more. SCSS is available at public and private sector banks, as well as at the Indian post offices. The scheme offers definite returns, which are taxable. However, the principal is subject to an exemption up to ₹1.5 lakhs under Section 80C according to the old tax regime. The Union Budget 2020 does not permit this exception.

Tax-Saving Investment Options from YES BANK

YES BANK’s tax-saving investment options offer utmost security of your funds and a rewarding chance to accumulative wealth overtime with attractive interest earnings. 

  • YES BANK FDs: YES BANK FDs assure the safety of principal, along with attractive interests and tax exemptions. With YES BANK’s five years tax-free FDs you can claim tax exemptions under Section 80C. Senior Citizens enjoy higher returns with YES BANK FDs.

  • YES BANK ULIPs: YES BANK’s specially-designed ULIPs, help you fulfil our financial goals faster and also enjoy tax deductions. ULIPs simultaneously offer insurance protection for you and your loved ones.

  • YES BANK ELSS: YES BANK ELSS schemes offer long-term higher returns with the short lock-in period of three years and tax savings. Further, ELSS funds allow you to diversify across several mutual funds, earn better yields and minimise risk.

Choose any of YES BANK’s tax-saving investment options and be sure to get best-in-class benefits, while earning significant returns at a lower risk.

 

 

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