Tax Saving Plan
Better tax saving plan will help a tax payers to get the best use of various tax exemptions, deductions and benefits to lower their tax liabilities.
Little Advice Can Help You To Get Your Tax Savings Done.
✓ Understand your taxable income before tax calculation & savings
✓ Understand the taxes on HRA and Home loan.
✓ Know the amount you need to save
✓ Start saving bills/receipts from various sources
✓ Emergency funds to be kept aside
✓ Insure your health and family, get tax benefits
✓ Family protection can lead to your tax saving plans
✓ Make regular Investments to save tax
✓ Avoid endowment insurance plans, ULIPS and tax saving FDs due to their higher lock in and tax implications.
What Comes Under 80C
80C is the very important for the service people. The maximum limit is 1,50,000 pa.
Heads Comes Under 80C
✓ Premium towards life insurance for either self or family members.
✓ Payment paid towards Superannuation/provident fund
✓ Tuition fees being paid for children (Up to 2 children only)
✓ Expenses for purchase or construction of housing property
✓ Amount invested in tax saving fixed deposit for minimum term of five years
✓ Apart from the above stated rebates, various other payments and investment such as mutual funds, investment in NABARD bonds etc are also entitled to tax rebate as per section 80C
✓ Amount paid towards Deferred Annuities paid self or the Government
✓ Amount deducted towards PPF
✓ Tuition fees of max 2 children in a financial year
✓ Home loan Repayment for a self-occupied residential property
✓ The investment done in special Mutual Funds schemes under Central Board of Direct Taxes
✓ Investment in SCSS
✓ Contribution towards recognized Provident Funds Scheme, managed by the Union Government
✓ Subscription money paid for Government endorsed Deposit Scheme
✓ Subscription money paid for National Saving Certificates
✓ Investments in ULIP Plans, 1971
✓ Investment in any notified Pension Fund offered by National Housing Bank
Popular Tax Saving Shemes
✓ Equity Linked Savings scheme (Mutual Funds)
✓ Public Provident Fund
✓ Employee Provident Fund
✓ Tax Saving Fixed Deposit
✓ National Pension System
✓ National Saving Certificates
✓ Unit Linked Insurance Scheme (ULIP)
✓ Sukanya Samridhi Yojana
✓ Senior Citizen Tax Savings Scheme
✓ Voluntary Provident Fund
Comparison Of 80C Instruments:
| S. No. | Options | Interest | Lock-in Period | Guaranteed Returns | Risk Profile |
|---|---|---|---|---|---|
| 1 | ELSS | 12-15% | 3 Years | No | Equity-related risk |
| 2 | PPF | 8.10% | 15 Years | Yes | Risk-free |
| 3 | NPS | 8-10% | Till retirement | No | Equity-related |
| 4 | NSC | 8.10% | 5 Years | Yes | Risk-free |
| 5 | FD | 7-9% | 5 Years | Yes | Risk-free |
| 6 | ULIP | 8-10% | 5 Years | No | Equity-related risk |
| 7 | Sukanya Samriddhi | 8.60% | 21 Years | Yes | Risk-free |
| 8 | SCSS | 8.60% | 5 Years | Yes | Risk-free |