As we all earn money yearly and at the end we have to face for income tax deduction , this article brings a light on bast five module under which you can exempt from income tax and even live happily for your future. Lets discuss them:
Under section 80C, a deduction of Rs 1,50,000 can be claimed from your total income(March 2017*)
2. 5 year Saving plan: Features and Benefits
3. 15 year PPF saving scheme:
5 Years National Savings Certificate (VIII Issue):,
From 1.10.2016, interest rates are as follows:-
8.0% compounded annually but payable at maturity. INR. 100/- grows to INR 146.93 after 5 years
Minimum nd maximum amount: Minimum INR. 100/- No maximum limit available in denominations of INR. 100/-, 500/-, 1000/-, 5000/- & INR. 10,000/-.
Features:
- Life Insurance Policy (LIC): Start investing in LIC it’s all about to provide the Financial security for your family in financially or having that protection cover when life adds some surprises to you may be in case of death or educational needs of your loved ones or financial support, there’s no replacement of insurance. LIC provide a lot of saving cum insurance plan. You can opt for them all this help to save the Tax as all LIC plan comes under 80C Some plans are:
Jeevan PragatiJeevan Labh PlanLimited Premium Endowment PlanJeevan RakshakNew Jeevan AnandSingle Premium Endowment PlanNew Endowment Plan
Under section 80C, a deduction of Rs 1,50,000 can be claimed from your total income(March 2017*)
2. 5 year Saving plan: Features and Benefits
- Minimum Amount – Rs. 100 & in Multiples of Rs. 100
- Maximum amount – Rs. 1.5 Lakhs (in a FY)
- Tenure – 5 Years (Lock In)
- Can be booked with Monthly and quarterly payout
- In the case of joint deposits, the Tax benefit under 80 c will be available only to the first holder of the deposit
3. 15 year PPF saving scheme:
- An individual can open account with INR 100/- but has to deposit minimum of INR 500/- in a financial year and maximum INR 1,50,000/-
- Joint account cannot be opened.
- Account can be opened by cash/cheque and In case of cheque, the date of realization of cheque in Govt. account shall be date of opening of account.
- Nomination facility is available at the time of opening and also after opening of account. Account can be transferred from one post office to another.
- The subscriber can open another account in the name of minors but subject to maximum investment limit by adding balance in all accounts.
- Maturity period is 15 years but the same can be extended within one year of maturity for further 5 years and so on.
- Maturity value can be retained without extension and without further deposits also.
- Premature closure is not allowed before 15 years.
- Deposits qualify for deduction from income under Sec. 80C of IT Act.
- Interest is completely tax-free.
- Withdrawal is permissible every year from 7th financial year from the year of opening account.
- Loan facility available from 3rd financial year.
- No attachment under court decree order.
- The PPF account can be opened in a Post Office which is Double handed and above.
5 Years National Savings Certificate (VIII Issue):,
From 1.10.2016, interest rates are as follows:-
8.0% compounded annually but payable at maturity. INR. 100/- grows to INR 146.93 after 5 years
Minimum nd maximum amount: Minimum INR. 100/- No maximum limit available in denominations of INR. 100/-, 500/-, 1000/-, 5000/- & INR. 10,000/-.
Features:
- A single holder type certificate can be purchased by, an adult for himself or on behalf of a minor or by a minor.
- Deposits qualify for tax rebate under Sec. 80C of IT Act.
- The interest accruing annually but deemed to be reinvested under Section 80C of IT Act.
*In case of NSC VIII , transfer of certificates from one person to another can be done only once from date of issue to date of maturity.
*At the time of transfer of Certificates from one person to another, old certificates will not be discharged. Name of old holder shall be rounded and name of new holder shall be written on the old certificate and on the purchase application(in case of non CBS Post offices) under dated signatures of the authorized Postmaster along with his designation stamp and date stamp of Post office.
5. ELSS
An Equity Linked Saving Scheme is an open-ended equity growth scheme that is offered by Mutual Funds in line with existing ELSS guidelines. The investments under this type of scheme are subject to a lock-in period of 3 years and, as per the Finance Act 2005, and are allowed the benefit of income deduction upto Rs. 1,50,000. ELSS offers the benefits of tax saving and capital gains. Instead of spreading your investments across different instruments such as PPF, ELSS, NSC and infrastructure bonds, you can now invest the entire limit of Rs. 1,50,000 available under Sec 80(C) in ELSS.
Funds aimed at enabling investors to avail tax rebates under Section 80-C of the Income Tax Act.
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