Most of us really do not really plan our tax saving avenues in a manner we think of our other Investments. It’s more of saving the taxes rather than utilizing the same money to generate higher returns.
The end of FY06 is arriving and most of the companies have issued timelines for employees to submit proof of Investment done for tax saving purposes.One nice thing about the last finance bill was the removal of restrictions from upper limits of various investing avenues and freedom was given to invest in the eligible avenues subject to overall limit of Rs 100,000.So, from the avenues given below, a tax payer can choose to invest in any avenue subject to a maximum investment of Rs. 100,000 to get deduction under Sec 80 C.
Avenues for Investment under Sec.80C
1. Contribution to Provident Fund
2. Repayment of Principal amount on Housing Loan
3. Payment of tution fee
4. Investment in PPF
5. Payment of Life Insurance Premium
6. Investment in NSC
7. Investment in Tax saving FD’s
8. Investment in Infrastructure development funds
9. Investment in Equity Linked Saving Schemes
Out of the above, Contribution to Provident fund is something in which most of us are already investing (deducted by employer) monthly. So out of the Rs.100,000, reduce the amount that would be deducted by the employer on account of your portion of contribution to Provident fund.
For those of us, who have school going children, Payment of tution fee is also considered for Sec. 80 C benefit.
For those who have availed of housing loan, the repayment of principal would qualify under the 1 Lac limit.
The question is how to utilize the rest of the limit (after PF, Children’s tution fee and repayment of housing loan, if any)(Right click and open the window in new tab)
Best Tax Savings ELSS
Save Your Tax using Equity-Linked Saving Scheme
www.best-tax-savings-elss
Save Tax On Investing
See Tax saving Investment list
www.save-tax-on-investing
The end of FY06 is arriving and most of the companies have issued timelines for employees to submit proof of Investment done for tax saving purposes.One nice thing about the last finance bill was the removal of restrictions from upper limits of various investing avenues and freedom was given to invest in the eligible avenues subject to overall limit of Rs 100,000.So, from the avenues given below, a tax payer can choose to invest in any avenue subject to a maximum investment of Rs. 100,000 to get deduction under Sec 80 C.
Avenues for Investment under Sec.80C
1. Contribution to Provident Fund
2. Repayment of Principal amount on Housing Loan
3. Payment of tution fee
4. Investment in PPF
5. Payment of Life Insurance Premium
6. Investment in NSC
7. Investment in Tax saving FD’s
8. Investment in Infrastructure development funds
9. Investment in Equity Linked Saving Schemes
Out of the above, Contribution to Provident fund is something in which most of us are already investing (deducted by employer) monthly. So out of the Rs.100,000, reduce the amount that would be deducted by the employer on account of your portion of contribution to Provident fund.
For those of us, who have school going children, Payment of tution fee is also considered for Sec. 80 C benefit.
For those who have availed of housing loan, the repayment of principal would qualify under the 1 Lac limit.
The question is how to utilize the rest of the limit (after PF, Children’s tution fee and repayment of housing loan, if any)(Right click and open the window in new tab)
Best Tax Savings ELSS
Save Your Tax using Equity-Linked Saving Scheme
www.best-tax-savings-elss
Save Tax On Investing
See Tax saving Investment list
www.save-tax-on-investing
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