In view of the epidemic coronavirus and lockdown, the government has extended the deadline for income tax returns. Now the income taxpayers can file delayed or revised returns for the financial year 2018-19 till July 31, 2020. The deadline for investment by the government to get tax exemption for the financial year 2019-20 has also been extended till July 31, 2020. Earlier, June 30 was the last date for investment to get income tax exemption. Today we are going to tell you about some tax saving investment options, through which income tax exemption can be obtained.
For your information, let us tell you that by investing in the National Pension System, the taxpayer can get income tax exemption. NPS Tier-1 account can also be opened online for income tax exemption. Customers can open NPS account through online banking facility of their bank. In this scheme, KYC verification of the customer is done by the bank during the registration process. After opening NPS account, customers can invest through internet banking, credit card or debit card and can avail income tax exemption.
Tax Saving Bank FD : Income tax exemption can also be obtained by investing in tax saving bank FD. If you also want tax exemption at this last time, then tax saving banks can invest in FD. Tax saving bank FD comes with a lock-in period of five years. This FD is currently offering returns from 5.50 to 6 percent. Interest income received from tax saving bank FD is taxable.
Public Provident Fund : PPF can also be invested to get income tax exemption. All major banks like State Bank of India (SBI Bank), ICICI Bank (ICICI Bank) and HDFC Bank (HDFC Bank) offer the facility of opening PPF accounts online to customers. Investors can transfer money from their bank account to PPF account through online. Investors can also generate PPF account statement and submit it as an investment proof for tax saving. An amount ranging from Rs 500 to Rs 1.5 lakh can be invested in a PPF account in a year.