Find out which tax
saving instrument fulfill your requirements
ELSS FUND Return 9.78% in the past three years
ELSS Funds are the best way to save tax Though the SIP window has closed for the taxpayers who would have had to show proof of the section 80C is the tax-saving investment by now.
ELSS funds have a
lock-in of 3 years, the shortest among
all tax saving options.
ELSS is the best way
to save tax for the young taxpayers they should stagger their instrument with monthly SAPs
NATIONAL PENSION
SCHEME
Return 10.8% for the
past 5 years
Charges in investments and the tax rules have the just made that the NPs more attractive firstly the entire 60% of the corpus that can be withdrawn at the time of retirement will now be tax free.
Secondly, investors can now allocate up to 75% of
equities in the active choice option of the NPs.
NPs Can Help
contribution up to 1.5
lakh can be claimed as deduction under section 80C
Additional deductions up to 50000 under section 80CCD (1b)
If your employer put
up to 10% of your the basic salary in the NPs that amount not be taxable
PUBLIC PROVIDENT FUND
Interest rate 8% for
January-March 2019
PF Rate hiked in October 2018 after a sustained rise in the bond yields through bond yields
Interest is tax free
Small savings schemes
at a distinct advantage over the fixed deposits
PPF scores high on safety
flexibility and ease of investments
SR CITIZENS SAVING
SCHEME
Interest rate 8.7% for
the January- March 2019
The (SCSS) was the best tax saving options for those above 60 and by offering seniors and additional 50000 exemption on interest income
Overall tax exemptions
for those above 60 in now 3.5 lakh and above 80 is 5.5 lakh
The tenure of the
SCSS investment is 5 years
Investment limit is
15 lakh
SUKANYA SAMRIDDHI YOJANA
Interest rate 8.7% for January-March 2019
For taxpayers with a daughter below 10 years the Sukanya Samriddhi Yojana is a good way to save
Interest will be 8.5% (could change)
Interest is higher than PPF
Interest is tax free
Minimum investment 1000
Minimum of two daughter
ULIPs
Return 8-14% for past five years
Even before that tax one capital gains was announce ULIPs had a distinct tax advantage
UPLIs offer equity
funds and also liquid funds for investors
Switching from equity to debt or vice versa does not have any tax
implications
launched by insurance companies are low on costs
Compete
with direct plans of mutual fund on charges
PENSION PLANS
Return 8-10% for past 5 years
The popularity of the NPs has elapsed pension plans from the insurance firms investors in NPs get an additional deduction of 50000 for contribution under section 80CCD(1b)
More tax can be saved by contributing through the employer
Interest rate 8% for January-March 2019
An interest rate of 8% make National Savings certificates (NSCs) a good options for those who wants to invest in a hurry
Interest deduction under section 80C
BANK FDs
Interest 7.5 - 8.2 5 % current
Tax Savings Bank fixed deposits are a good choice for those who may have left their the tax planning for the last minute
Tax Savings Bank fixed deposits are a good choice for those who may have left their the tax planning for the last minute
Interest rates are not high
INSURANCE
Return 5% for 20 year
plan
Traditional policies are not able to offer the insurance
cover that a person actually needs
Parents of them suggest endowment plans to
their kids not realizing that these can be a millstone around their kids necks.
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