Dear Friends,
For lot of individuals who are working, they can save the tax on 1lakh rupees under section 80C of income tax act.
How to calculate your tax click here
Every one of us know about the price of food items and every necessities are increasing very fast even government is trying to control them but its not getting success, simple example for this is check the rice price in last 30 years, it never come down.
So government of India want every one of us save enough money for tomorrow, so they introduce this new section to save money and secure our family. with one of evil called inflation this is only my view way government introduced this section. You can save 1lakh rupees in different ways to get the tax benefits on that. Following are the some products which are used to save tax under section.
Section 80L used to allow deduction of interest earned on, say, a National Savings Certificate or a bank deposit up to a limit of Rs 12,000. But now all these are gone .In their place has come Section 80C -- "u/s 80CCC, & u/s 80CCD", as the Finance Bill puts it. Thus, the new Section 80C of the Income Tax Act proposed in Union Budget gives you a bigger tax break than what the current regime offers.
- Deduction in respect of Life Insurance Premium, Contribution to Provident Fund, etc.
- Rs 1 lakh can be invested under this section without any individual sub-limits except in the case of Rs 10,000 in pension funds.
- Sections 88, 80L, 80CCC and 80CCD is clubbed in.
INSERT (AY 2007-08)
It is proposed to insert clause (xxi) in sub-section (2) of this section in order to provide that the investment in a term deposit for a fixed period of not less than five years with any scheduled bank shall be eligible for a deduction under this section.
It is proposed to insert clause (xxi) in sub-section (2) of this section in order to provide that the investment in a term deposit for a fixed period of not less than five years with any scheduled bank shall be eligible for a deduction under this section.
- Fixed Deposits
- Life Insurance (Term, Endowment, Unit Linked Plans)
- Mutual Funds - ELSS,
- NSC Bonds
- PF/EPF/PPF
- Post Office Time Deposit Account
There are some other products which can offer this benefits but these are the well know and good products. All these products are with risk level from medium to high, every type of saving will have there own risk level.
Sections abolished from Union Budget 2005-06
- 88 (Rebate on Life Insurance Premia, Contribution to Provident Fund, etc.)
- 80L (Deductions in respect to Interest on certain Securities, Dividends, etc.)
- Note : Rebate of Rs 5,000 for women and Rs 20,000 for senior citizens have been wiped off.
So as per your individual needs you can select the products, if you are not sure about which product will best for you, first write all your needs and requirements to contact a better financial adviser who can help you with his unbiased discussion. I feel no one else can understand your financial need better than you.
For best planning write us @
sriram.adviser@gmail.com
Phone No : +1-408-250-9952 (USA)
+91-9741598945 (India)
2 comments:
1. Do not blindly invest money with the the first agent that you might come across. You might end up making mistakes. A lot of people end up buying insurance policies with minimal insurance coverage or putting money in instruments where they cannot access the money when they need it.
2. Do not make last minute decisions just because your payroll department has reminded you that the internal deadline for submitting proofs is approaching. Tax planning involves planning in advance to avoid the last minute scramble
Dear Sushil Girdher,
That's great to know about your view about this, my dream to that every one should plan this from the beginning but very less number of people are doing, and few people they really don't know about this option also so i am try to help them out. thank you so much for your comments.
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