Outlook Money
EEE means Exempt, Exempt, Exempt! There are three ways in which tax is saved in this category. In this, there is no tax on the amount deposited every year, there is no tax on the interest earned every year and the entire amount received at the time of maturity is also tax-free.
To save tax, everyone wants to invest money in such a scheme where he or she not only gets good returns but also gets tax exemption. Therefore, EEE schemes are the ideal option.
Schemes that come under the EEE category are the Public Provident Fund (PPF), Sukanya Samriddhi Yojana, Equity Linked Savings Scheme and Employee Provident Plan.
PPF is a better option to save tax and invest in a safe place. Under this scheme, any investor can deposit a minimum of Rs 500 and a maximum of Rs 1.5 lakh in a year. The special thing about this scheme is that investment money, interest received on it and maturity amount are all tax-free.
Under this scheme, the investor gets 8.2 per cent interest. In this, any parent can deposit Rs 250 to Rs 1.5 lakh annually in his or her daughter's account. The money is deposited for 15 years and when the daughter turns 21, the entire amount along with interest is returned to the investor.
ELSS is also called tax-saving mutual funds. In this scheme, one can deposit money in a lump sum and can also do it through SIP. Its lock-in is for three years. After this, one can withdraw money anytime or continue investing. If withdrawn after 3 years, one gets tax benefits.
EPF is a good scheme to save tax. At present 8.25 per cent interest is given to it. In such a situation, one can add a good amount of money through this scheme.
Compiled by Syed Muskan