[ad_1]
Index Fund Corner
Sponsored
| Scheme Name | 1-Year Return | Invest Now | Fund Category | Expense Ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest Now | Equity: Large Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest Now | Equity: Large Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest Now | Equity: Large Cap | 0.25% |
| Axis Nifty 500 Index Fund | — | Invest Now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest Now | Equity: Mid Cap | 0.28% |
Equity-Linked Savings Scheme (ELSS)
ELSS mutual funds offer tax deductions under Section 80C, with a three-year lock-in period. These funds provide the dual benefit of wealth creation and tax savings.
Public Provident Fund (PPF) and Employees’ Provident Fund (EPF)
PPF remains a preferred long-term investment with tax-free interest and maturity proceeds. Contributions to EPF also qualify for deductions under Section 80C.
National Pension System (NPS)
Contributions to NPS offer tax benefits under Sections 80CCD(1), 80CCD(1B), and 80CCD(2). Additional deductions of Rs 50,000 are available under Section 80CCD(1B) for self-contributions.
Health insurance and critical illness riders
Premiums paid for health insurance policies qualify for deductions under Section 80D. Health riders attached to life insurance plans provide additional coverage for critical illnesses and are also eligible for tax deductions.
Tax-saving fixed deposits (FDs)
Five-year tax-saving FDs offer deductions under Section 80C. However, the interest earned is taxable.
Life insurance and ULIPs
Life insurance provides both financial security and tax benefits.
“Term insurance plans provide financial protection for your family as well as tax savings,” said Alok Rungta, CEO and MD, Future Generali India Life Insurance.
Under Section 80C of the Income Tax Act, premiums paid for life insurance qualify for deductions up to ₹1.5 lakh. The death benefit received by nominees is tax-exempt under Section 10(10D).
For those looking to combine investment and insurance, Unit Linked Insurance Plans (ULIPs) are an option. Premiums paid for ULIPs also qualify for deductions under Section 80C.
Additionally, the maturity proceeds are tax-exempt under Section 10(10D), subject to prescribed conditions.
Sukanya Samriddhi Yojana (SSY)
Parents investing for their daughter’s future can avail tax benefits under Section 80C, with tax-free interest and maturity proceeds.
National Savings Certificate (NSC)
NSC investments qualify for deductions under Section 80C. The interest earned is taxable but eligible for reinvestment benefits.
First Published: Mar 31, 2025 11:49 AM IST
[ad_2]
Source link