Friends, you work very hard and earn money and a lot of that money goes in tax
And as a citizen we should pay taxes
But there are a lot of sections where we get a lot of privileges to save taxes
And like that there is a section 80c
Under 80c we can save taxes
And along with saving taxes, on that saved money we can make a lot of returns
In this video today we will talk about those 7 ways
Under 80c, investing in which
We can save taxes and make returns on that money as well
I, Jagdeep Singh, welcome you to the Groww channel
Let us start today's video in which we will talk about how we can save taxes
And what are the ways of saving taxes
And what are the benefits and drawbacks of these ways
If I talk about the first way by investing in which you can save taxes
That is ELSS
Equity Linked Saving Scheme
This is one type of mutual fund
If you invest in this
Then you have to make a minimum investment for three years
And if I talk about the lock-in period
This is the minimum if I talk about the other ways of investing to save taxes
This is the minimum lock-in period
By investing in this you can make good returns and apart from that
You can take a tax deduction up to 1.5 lakhs
So if you come in the 30% salary bracket
And if you invest 1.5 lakhs
So 45,000 Rupees tax
And if I talk normally about the past year's returns
Then ELSS has given around 12% return
So if I talk about the total income, by investing here
You can save 15-16,000 rupees return and on 1.5 lakhs you can save 45% taxes
So an average of 12.3% returns were given by ELSS funds
So if I talk about how much the highest return, then the highest return was
One ELSS mutual fund gave a return of around 21%
So you can get an idea that by investing in ELSS
Along with saving taxes, you can get good returns as well
Whenever the topic of mutual funds comes up, I always tell you to see where those mutual funds invest
So if I talk about ELSS mutual funds
Then there is one type of multi cap mutual fund
Multi cap means they invest in large cap, mid cap and small cap
They state their investment objective and accordingly invest
And they try to give you very good returns
But whenever we invest we should always get an idea of our risk
And only after that we should decide which ELSS fund we should invest in
But by doing a little research and investing for the longer horizon
Like here, you have to make a minimum investment for three years
Then ELSS can be a very good option
To save tax and make good returns
Let us talk about the second way under 80c through which you can save taxes by investing
And this is PPF
Public Provident Fund
This is an investment and saving scheme, in which if you invest for 15 years
You get a tax deduction on your invested money
And the maximum tax deduction you get here is up to 1.5 lakhs
Now I will talk about the returns on this
The normal returns that PPF gives you is 8.1%
Now this question must be coming in your mind
That you get very good returns in ELSS
And in PPF you get a return of 8.1%
And you should pay a little attention here
That ELSS invests in equity
Where there is a little volatility
And the risk is also higher so you can get higher returns
But if I talk about PPF then its under the central government
Where the volatility is very less and your money is almost always safe
And if I talk about returns then 8.1% is a moderate return
Now you must be thinking that if you invest in PPF then your money is blocked for 15 years
Now consider that if I need money after 3-4 years then what should I do?
What option is left for me in that case?
So in the case of PPF you get an option that the money you have invested, you can get a loan on that
So in between if you require money
So if you have put money in PPF
You will get return on that money
And if you need money for short term then you can get loan on that money
And complete your short term requirement
Now we will talk about after how long can you remove money from PPF
So in PPF there is a withdrawal option after 7 years
Which means that if you invest now, you can remove some money after 7 years
There are different slabs in this about how much money you can remove
Let us talk about the third way
Now you must be thinking you don't want to invest in PPF and you don't want to put money in ELSS either
Because I normally deal with banks
And I consider my money to be very safe to when it is in a bank
So here also there is an option to save taxes
If you make an FD in any bank with a five year lock-in
Then on your invested money you can get a 1.5 lakh tax deduction
Which means that if you're going to make an FD in any bank
And you did not think of tax deduction under 80c
You can make an FD for more than 1.5 lakhs
In that bank with a five year lock in and get a tax deduction up to 1.5 lakhs
So if I talk about returns then in every bank you get different returns
Because every bank has their own interest rates
So you can go and see and try for yourself which bank gives the highest returns
And after that you should decide in which bank you should open and FD
On tax deduction also and returns on their interest rate
Let us talk about the fourth investment option through which you can save a lot of money and taxes
And the name of this investment option is EPF
Employee Provident fund
As you know that in India there are a lot of people who are salary employees
So the government brought about a new account EPF through which a certain amount of money goes in that account
So that when they go into retirement they have a good amount of money
So that they can fulfil their requirement
If I talk about the returns of EPF
In the past year the return that EPF has given is around 8.65%
So the amount of money that goes in EPF depends on the employee policies
But no employer can make a contribution more than 12% of the employees salary
Now you must be thinking that if you're working for ten years and there is a good collection of money in your EPF
In what cases can you remove money from the EPF
So there are overall three cases from which you can remove money from the EPF
Without any penalty
The first is if you have reached the retirement age
The retirement age is 58 years
So after 58 years you can go anytime and remove money from the EPF
The second case is that you have lost your job and it has been more than two months since you lost your job
You can remove money from your EPF to meet your requirements
If I talk about the third case, there are a lot of cases in which can remove money from your EPF
Like, while doing your job you realise you want to go abroad for your higher education
In that case you can remove the money
If there is a medical emergency, then you can remove the money
It's your child's wedding or any other expense like this
Where you really need money, then you can remove money from here
Let us talk about the fifth way, investing in which you can save taxes, that is called NSC
It stands for National Saving Certificate
In which the minimum investment is Rs 100
And if your investment is up to 1.5 lakhs then you can get a tax deduction
If I talk about the returns here then on an average you get a return of 8%
Which is a good return in comparison to bank FD
If I talk about 5 years, then after 5 years when your principal amount
And you get your interest back
Both your things are tax free
Which means that the interest you earned, there will be no tax on that
And the money you invested, you wont have to pay tax on that either
Now let us talk about Sukanya Samriddhi Yojana
This also comes under 80c, and if you invest in this
You can make returns and save taxes on your invested money
Under Sukanya Samriddhi Yojana, if you have a baby girl
Before she reaches the age of 10 years you have to make an account in this
And the maximum investment can be up to 14 years
When you open your account for the first time
And the return you get here is around 8%
And when the girl child reaches the age of 18, you can make a 50% withdrawal for education
Apart from that, at the time of marriage, you can remove that money and meet your requirements for that
Let us talk about the last investment option under 80c
Investing in which you can save taxes and make returns
And the name of this investment option is ULIP
The full form of ULIP is Unit linked insurance plan
You serve two purposes by investing here
First is of investment
Because when you invest under 80c, you think your tax should be saved and you get returns
So under this plan, your tax gets saved and you get returns
But here you get the benefits of insurance as well
So here two purposes are served
But from here some amount will go in the insurance premium
And some amount will go in your investment
And that investment you can decide if you want to invest in equity or debt
And you can go ahead and change that as well
Where there are other ways of investing
So these were the investment ways under 80c where you can save taxes
But you shouldn't think that you should invest only in one plan
Because a lot of people, looking at their risk want to diversify
So under 80c, you can invest in different places
You will get an overall benefit on 1.5 lakhs
In this you can invest in different places, you will the maximum benefit on 1.5 lakhs so out of that you can divide the money in different places
To take a little risk you can invest a little money in ELSS
From where you can get more returns as well
If you like bank FD then you can put a little money in bank FD as well
In the same way you can put a little money in Sukanya Samriddhi Yojana and plan your baby girl's future
So I have told you about these different investment options
So that you can see the overall plan and put your money in different places
So that you can diversify your money
And your different investment objectives
That can also be met along with saving taxes
So if I talk about the financial year '20, you have to invest before 31st March if you want to enjoy tax benefits
So if you haven't invested anywhere
You can start investing from now
So that if you file your taxes this year
On which we will make a very detailed video, about how you can file taxes
So that you can start investing now so that you don't have the pressure of saving taxes then
So if you liked this video, press the like button, if you haven't yet subscribed to this channel then please subscribe
Because we bring 2-3 videos on investment every week on this channel
Which can help you become a good and an intelligent investor
So I will end this video with a question for you
If you have to invest under 80c, then which one would be your favourite investment option
You can give a reason for that as well
So that from your comment, we and a lot of of our viewers can get to learn
Happy investing!