Bangalore: Tax incentives help you to reduce a fraction or all the burden of tax chargeable on your earnings from various sources. Whatever amount of money you invest and the returns you earn on over your investment, both are considered taxable. So you must know the fives ways by which you can avail tax incentives on your investment and on its returns to save tax, reports CIEL on behalf of ET.

1. You can gain tax incentives on your investments in the form of exemption for the amount invested, income earned and maturity amount. These incentives would be provided at any, none or all three stages of investment.

2. While for EET (Exempt, Exempt, Tax) regime, your investment would be taxed only at its withdrawal stage. National Savings Certificates (NSC) and pension policies are examples of EET investment as the amount put in these is deducted from your total income while filing your income tax return. The income you earn over your EET investment is exempt from tax.