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Tax investments is one of the essential parts of a person’s life, which helps in offering a deduction in tax. Therefore tax Saving income is an excellent way to earn some extra cash
However, tax investments are not a necessity that you have to spend your savings on products that give you low returns or feature a lot of risks; or even those which are associated with a lot of various investments.
To help you out, we have listed down some of the best ways in which you can invest your income in tax saving products to earn excellent returns.
As an investor, you should always look for the best investment options which will not only help you to save your tax but also generate tax-free income.
So, here we have brought to you a list of a number of tax saving products for small companies.
Various tax saving products for small companies are listed below:
ELSS: EQUITY LINKED SAVING SCHEME MUTUAL FUND
The equity-linked saving scheme mutual fund is quite a variant and has two significant features which include – the investment amount, which comes in the scheme of ELSS.
Even the second part is that there is an investment made for three years as well in ELSS. You can earn an interest up to fifteen to eighteen percent with the same.
In order to mitigate the various risks which are involved, you as an investor may diversify across a number of ELSS schemes, surely after considering their consistent long-term performance.
Now, after the end of the lock-in period, you may or may not continue with your ELSS investments. It is quite similar to being a part of any other open-ended MF scheme.
If you are planning to invest your money in ELSS, then you will not only be able to save a good sum of money for a long period of time, but will also be able to generate tax-exempt income.
National Pension Scheme (NPS)
The national pension scheme is one of the best ways to invest all the savings that you have made from saving taxes.
You can get tax exemption by three different methods from this scheme, which includes that you can contribute around one and a half million to the maximum.
Also, ten percent of the salary you earn can be added to the national pension scheme, and this is not taxed as well.
Unit Linked Insurance Plan (ULIP)
Unit Linked Insurance Plans are one of the best tax-saving investments which help in making sure that you get the benefit of exemption of tax, which can be attained with the help of investors.
Still, it is also helpful as it brings high returns on all the investments which help in an extended period.
This is not the case like before. Still, it is a trend in the new age wherein the various insurance companies under ULIP are available based on zero premium allocation charges. Also, there are no charges on administration, as well.
PPF or Public Provident Fund
This is another tax-saving method of investment, which is again a fantastic scheme as well.
You can incorporate tax-saving investments with the help of investors, who also help in creating economic cohesion of that period of the time that comes after retirement for the people who have attained the age of sixty in their life.
The interest rate which can be obtained on the balance of PPF is given every quarter, which is another excellent way to earn returns on investments.
National Savings Certificate
The tax investment scheme can give you a unique way of getting a fixed income.
You can visit any post office and get the project started easily and very quickly.
This scheme is quite helpful for you if you are planning to ensure the safety of all the investment you are making; as it is a saving scheme which has been initiated by the government for you.
The plan is quite simple and has been designed majorly to encourage people who have the middle income to invest and benefit from income tax-ability as well.
Senior Citizen Saving Scheme
This tax-saving scheme is also one of the best investments which have been backed by the government.
The program has been specially designed to make sure that there is assure financial safety to the citizens who come in the category of senior citizens.
Under this tax saving scheme, all the senior citizens have to make a one-time deposit and can invest to the most at the amount of around fifteen million, and at the lowest around one thousand bucks.
You can also go for joint holding in the case of fifteen million as well.
Bank Fixed Deposit Scheme
The fixed deposits in banks are quite a guaranteed return option, which brings a return for you.
You can go with the same for maybe about five years to you can go for a low term period of six months.
Also, this option will help you get tax free income as well. For people who are looking for low-risk opportunities, this is the way to go; as you can save a lot of money with this and also ensure little risk appetite.
This is one of the safest tax-saving products where you can invest, and there is no need to take stress about the same.
Why should you invest in Waxhands?
Another way to make the most out of your saved tax income is by investing in Waxhands. You can get this franchise as well.
The business they are running is unique, so it is always a great idea. Since their concept is unique, and also their start-up cost is low; investing will not be an issue.
With their unique ideology of running the business, the returns on the investment you make on the market are entirely assured and safe.
The final verdict:
So now you know how to deal with your tax investments. Hence make the most of your income which you have saved all these years from tax saving products and enjoy the returns obtained on your investment.
I’m currently working as a Charted Accountant with FintaxExpertsIndia. I have a great passion for outsourced accounting. In the last couple of years, I have worked with big and small clients across numerous continents. I have a keen interest in outsource payroll services, BPO services India, outsourcing financial services, outsource Back office services, offshore Accounting, etc.
Before we go, let look at this tax pre tips or Tax Saving infographic from Qickbook accounting software;