Tax Free Income: There is no need to tell about how important and necessary saving is in today’s time. An investor should invest not only to achieve financial goals but also to keep in mind the ways to save tax. Here we will learn about some such government schemes, which not only give you huge returns but also help you a lot in saving tax.
Public Provident Fund (PPF)
PPF i.e. Public Provident Fund is a popular government investment scheme. This scheme comes under EEE (Exempt-Exempt-Exempt) category. Meaning of EEE – The investment amount, interest received from the investment and all the amount received on maturity will also be completely tax-free. This means, you will not have to pay a single rupee tax on the PPF scheme. Currently, 7.1 percent interest is being given on PPF scheme. PPF account matures in 15 years.
Sukanya Samriddhi Yojana (SSY)
Sukanya Samriddhi Yojana (SSY) opened for daughters is also completely tax-free. Sukanya Samriddhi Yojana also comes under EEE category. Under Sukanya Samriddhi Yojana, bumper interest of 8.2 percent is being given to daughters. This much interest is not available on any other scheme for daughters. Under this scheme, a maximum of Rs 1.5 lakh can be invested in a year.
Employees Provident Fund (EPF)
Apart from these schemes, which are not completely tax-free. However, most people get its benefits. From April 1, 2021, if the employee’s annual contribution to EPF is less than Rs 2.5 lakh, you will not have to pay a single rupee tax. If this contribution is more than Rs 2.5 lakh then you will have to pay tax on interest. EPFO has recommended an interest rate of 8.25 percent on EPF accounts for the financial year 2025-26, which is the same as last year.