Like tax-saving deductions, tax-saving investments can also be claimed under the old tax structure.
#1. Investment in EPF/ PPF
The amount invested up to Rs. 1.5 Lakhs in Employee Provident Fund or Public Provident Fund account is exempted from taxes.
#2. Investment in Sukanya Samriddhi Account
The amount up to Rs. 1.5 Lakhs that you have invested in Sukanya Samridhi account towards girl child education can be claimed as deduction while computing tax.
#3. Investment in ULIPS & ELSS
Investments in tax saving mutual funds (ELSS) or Unit Linked Insurance Plans (ULIPs) of an amount up to Rs. 1.5 Lakhs can be claimed as a deduction.
#4. National Saving Certificates (NSC)
An NSC account opened at the post office helps you save taxes of up to Rs. 1.5 Lakhs under section 80C of the IT Act.
#5. Five Year Tax Saving Deposit Scheme
Fixed deposits created for 5 years with the purpose of tax savings will help you reduce your tax liabilities up to the extent of Rs. 1.5 Lakhs.
#6. Senior Citizens Savings Scheme
Amount saved (up to Rs. 1.5 Lakhs) under the senior citizen savings scheme (applicable for senior citizens only) can be claimed as an exemption.
Note– The upper limit of investment under section 80 C cumulative is Rs. 1.5 Lakhs irrespective of the investments made in various accounts.
This was the last chapter of the CashCow course. Now you have all the knowledge that you require to retire early and live your dream life.
I would like to hear about your experience with the CashCow journey.