Published : 13 Jan 2023

Here are some of the financial tools that can help save up to  Rs.1.5 lakh.

This saving scheme can be availed at most banks and post offices for a tenure of 15 years at 7.10% rate of interest, and is tax-free. The interest rate changes every quarter.

This FD scheme is for a tenure of 5 years and provides tax deduction of up to Rs.1.5 lakh. The rate of interest ranges between 7.00% to 8.00%, which is taxable.  

 This scheme is for a tenure of 5 years and offers a 6.80% rate of interest which is counted towards the 80C limit of Rs.1.5 lakh. 

For a contribution made to NPS scheme, the taxpayer can avail tax deduction up to Rs.1.5 lakh under Section 80CCD.

Contribution of 12% of the salary made toward EPF scheme is counted towards the limit of Rs.1.5 lakh under Section 80C.

Contribution made towards SCSS is also counted towards the limit of Rs.1.5 lakh. The SCSS is available to citizens over 60 years for 5 years tenure at a rate of interest 7.60%, which is taxable.

Mutual fund investment of minimum 80% of the asset is made towards equity that comes with a 3 years lock-in period and subject to Long Term Capital Gain Tax at 10%. This scheme offers an exemption of above Rs.1 lakh.

Insurance policies including endowment policies, ULIP, and term insurances offer tax deductions of up to Rs.1.5 lakh, provided the insurance covers 10 times the annual premium.

Home loan repayment of the principal amount also provides tax deduction up to Rs.1.5 lakh per annum.

Tax deduction of up to Rs.1.5 lakh can be availed by the taxpayer on tuition fees payment for children. 

A tax deduction can be claimed on the interest payable on house loan under Section 24 of Income Tax Act.  A tax deduction can be claimed up to Rs.2 lakh while there is no upper limit in case the house is given out for rent.

Under Section 80D, a salaried employee can claim tax deduction against medical insurance. An individual can claim Rs.25,000 against medical insurance taken to cover spouse and dependent children and another Rs.25,000 for parents and Rs.50,000 against medical insurance that is taken to cover their parents who are senior citizens.