Unlocking Financial Benefits
As you embark on your first job journey in India, you'll be delighted to know that the government offers several investment schemes and tax-saving options to help you build a secure financial future. Here are some valuable choices:
Employee Provident Fund (EPF):
EPF is a mandatory contribution scheme where a portion of your salary is deducted and invested, along with an equal contribution from your employer. It offers tax benefits under Section 80C of the Income Tax Act in addition to acting as a retirement corpus. Here's more on EPF.
Public Provident Fund (PPF):
PPF is a long-term investment plan with a 15-year lock-in period. It offers tax deductions under Section 80C and tax-free interest earnings, making it an attractive option for conservative investors.
National Pension System (NPS):
NPS is a voluntary retirement savings scheme, providing market-linked returns with an option to choose between equity and debt investments. Section 80C tax benefits are available under this scheme, while Section 80CCD(1B) allows for an extra deduction of up to Rs 50,000. Know more here.
Equity-Linked Savings Scheme (ELSS):
ELSS is a mutual fund that primarily invests in stocks and offers tax benefits. It offers tax deductions under Section 80C and has the shortest lock-in period of just three years among tax-saving instruments.
Sukanya Samriddhi Yojana (SSY):
SSY is a savings scheme exclusively for the girl child, providing tax deductions under Section 80C. It offers an attractive interest rate and has a tenure until the girl child turns 21.
Tax-Saving Fixed Deposits:
Several banks offer tax-saving fixed deposits with a lock-in period of five years, providing tax benefits under Section 80C.
Senior Citizens' Saving Scheme (SCSS):
SCSS is for senior citizens, offering tax deductions under Section 80C. It provides regular interest income and has a tenure of five years, extendable once for three more years. Read more here.
As a first job starter in India, you have access to an array of government-backed investment schemes and tax-saving options to secure your financial future. Utilize these opportunities wisely to build a strong financial foundation while enjoying tax benefits and earning potential. By making informed decisions and leveraging these government-backed initiatives, you'll set yourself on the path to a financially sound and prosperous future.
