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How to Verify Property Legality Before Buying – Avoid Scams and Legal Issues

Buying a property is a significant investment, and any mistake in verifying its legality can lead to severe financial and legal troubles. With rising real estate fraud cases, it is crucial to check whether a property is legally valid before purchasing it. This guide will help you understand the essential documents to verify and how to ensure that your investment is safe. 1. Why Property Verification Is Important? Real estate frauds, disputed properties, and illegal constructions are common issues in property transactions. To avoid such risks, a thorough verification of legal documents is necessary. Proper verification ensures: The seller has the legal right to sell the property. The property is free from legal disputes and financial liabilities. All government approvals and clearances are in place. 2. Essential Documents to Check Before Buying Property (i) Title Deed Verification A title deed is the most crucial document proving ownership of the property. Before finalizing a deal, ...
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Tax Saving Investment Options Under the Old Tax Regime

As the deadline for filing income tax returns approaches, taxpayers must carefully choose between the old and new tax regimes. While the government is actively promoting the new tax regime, the old regime continues to offer several deductions and exemptions that can help taxpayers save on taxes.

Currently, India follows a dual tax system, comprising the old and new tax regimes. In the latest budget, the government made significant changes to the new regime by making income up to Rs. 12.75 lakh tax-free. However, no modifications were made to the old tax regime. Under this regime, income up to Rs. 4 lakh is tax-free, and taxpayers can benefit from multiple exemptions and deductions to further reduce their tax liability. In contrast, the new tax regime does not provide any such benefits. If you are opting for the old tax regime, here are some key tax-saving investment options to consider.

1. National Pension System (NPS)

NPS is considered one of the best retirement investment options. Taxpayers opting for the old tax regime can invest in NPS and claim deductions of up to Rs. 50,000 under Section 80CCD (1B). Additionally, they can avail of an extra deduction of Rs. 1.5 lakh under Section 80C, making it an effective tax-saving tool.

2. Public Provident Fund (PPF)

PPF is a long-term tax-free investment option. Contributions made towards PPF are eligible for tax deductions under Section 80C. Moreover, the interest earned and the maturity amount are entirely tax-free, making it an attractive option for tax-saving purposes.

3. Unit Linked Insurance Plan (ULIP)

ULIPs offer the dual benefit of investment and life insurance. With a mandatory lock-in period of five years, ULIPs provide tax exemptions on premium payments and ensure that the maturity amount remains tax-free.

4. Tax-Saver Fixed Deposit (FD)

Fixed deposits under the tax-saver category allow taxpayers to claim deductions of up to Rs. 1.5 lakh under Section 80C. These FDs come with a five-year lock-in period and are considered a secure investment option.

5. Senior Citizen Savings Scheme (SCSS)

Designed specifically for senior citizens, SCSS provides a high-interest rate of 8.2% per annum. Investments up to Rs. 30 lakh are eligible for tax deductions, making it a beneficial scheme for retirees looking to save on taxes.

6. Sukanya Samriddhi Yojana (SSY)

This government-backed scheme aims to secure the financial future of girl children. Parents investing in SSY can avail of tax deductions of up to Rs. 1.5 lakh under Section 80C. Additionally, the returns from this scheme are completely tax-free.

7. Equity-Linked Savings Scheme (ELSS)

ELSS is a market-linked tax-saving option offering high returns. Investments in ELSS qualify for deductions of up to Rs. 1.5 lakh under Section 80C. With a three-year lock-in period, ELSS provides one of the shortest maturity durations among tax-saving instruments.

8. NPS Vatsalya Scheme

During the latest budget, Finance Minister Nirmala Sitharaman announced tax benefits under the NPS Vatsalya scheme. Investments made in this scheme allow taxpayers to claim deductions of up to Rs. 50,000 under Section 80CCD (1B). The scheme also includes additional tax exemptions under Sections 80CCD (3) and 12(B), offering more savings opportunities beyond the standard Rs. 1.5 lakh limit under Section 80C. Parents investing in their child’s name under this scheme can avail of extra tax benefits.

Maximum Tax Deduction Limit

It is essential to note that under Section 80C, taxpayers can claim deductions of up to Rs. 1.5 lakh on investments in tax-saving schemes. The government encourages investments in these schemes by providing tax benefits, allowing taxpayers to optimize their savings.

Choosing the right tax-saving investments under the old tax regime can significantly reduce tax liability while ensuring financial growth. Taxpayers should assess their financial goals and risk appetite before making investment decisions.

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