Tax Saving Investments That Are Great For Women

You must have always come across the debate as to saving more is better or earning more. For some, it is easier to save and for some, it is easier to earn more. There are two ideologies for that. I believe in none of these. I think tax saving investments actually do both. It saves what you have earned for yourselves to be spent for your own selves.  

As an individual, how you manage your finances says a lot about you. We live in times where only one stream or source of income is an outdated idea. Every individual needs multiple sources of income so that they have the power to choose the lifestyle they desire. It is not enough to just earn money. You need to grow it too by making a passive income through it.

Women must understand that being educated and independent is just going halfway down the road. In order to cover the other half of the road, women need to be prudent with their money and be smart with how they spend it. Just earning money is not good; you also must spend and save it wisely. Get to know how to invest to save tax!

Women have certain privileges for tax savings. There are certain  saving investments that you should make to pay tax lesser. Let me describe to you the list.

1. File Every Business Expense

To lower net taxable income, self-employed professionals, freelancers, and businesswomen can claim costs for food, travel, utilities, and other items. You can also claim depreciation on assets utilised for company purposes, such as a laptop, camera, automobile, and so on. Women entrepreneurs in India have special government programmes to help them build their smaller businesses.

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2. Invest in Health Insurance

You can address future healthcare bills while also saving money on taxes by investing in a decent health insurance policy. Under Section 80D of the IT Act, you can save up to Rs. 25,000 per year on health insurance premiums for yourself, your spouse, dependent children, and senior citizen parents. For insurance coverage you pay for your senior citizen parents, you can receive an additional Rs. 30,000.

3. Open a Savings Account

The interest earned in your savings accounts is deductible from your taxable income up to Rs. 10,000. It means that by mentioning the interest generated on savings deposits, you can claim tax deductions under Section 80TTA. Start claiming your interest from your already existing savings account or open one now to avail this benefit.

4. Sukanaya Samriddhi Yojna

The government of India launched this scheme in 2015 as part of the Beti Bachao Beti Padhao campaign. It had a significant influence on the general people. If you have a daughter under the age of ten, you can invest in the Sukanya Samriddhi Yojna, which has the status of exempt-exempt-exempt (EEE). You can deduct all of your contributions to this plan, and the maturity amount is not taxed. This scheme allows you to invest a minimum of Rs. 1000 and a maximum of Rs. 1.5 lakh. When your daughter reaches the age of 21, this account will mature. When she reaches the age of 18, you can withdraw up to 50%.

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5. If you are paying a Home Loan

If you organise your house loan correctly in compliance with section 80C, you can save money on taxes. Section 80C sets a maximum of Rs. 1.5 lakhs for the principal amount and section 24 sets a limit of Rs. 2 lakhs for the interest amount.

6. HUF & Extra Income

If you have a secondary income in addition to your primary salary, you can save money by reducing the amount of tax you pay on that income. Money obtained via freelancing, for example, will be considered a secondary source of income. For the secondary income, you'll need to open a separate HUF account. Then you can put that money into an investment under section 80C to get tax benefits on it.

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7. Equity Linked Savings Scheme

A tax-advantaged mutual fund, or ELSS, is a type of mutual fund that also offers tax advantages. You can deduct up to Rs 1.5 lakh invested in an ELSS fund in a financial year under Section 80C. An ELSS fund can provide a return of up to 15%-18% and has a three-year lock-in period, making it an excellent addition to your investment portfolio.