80C

Time to submit our investment receipts for tax saving. Last minute investors busily searching various channels to invest for tax saving. A brief information of different 80C channels I have listed.

Say, a person’s gross annual income is Rs.5 lakh and he invests Rs.1 lakh under 80C, his net taxable income becomes Rs.4 lakh.

If failed to invest this year at least we can make proactive decesion in the coming financial year by investing early.

80C Tax-saving channels











































Saving option

Lock-in period

Risk

Provident fund,


pension fund

Till end of service

Nil

Public Provident Fund

15 years

Nil

National Savings


Certificates

6 years

Nil

Bank fixed deposits

5 years

Low

Insurance policies

(endowment, money-back)

Policy term

Low

Ulips, pension plans

3-5 years

Low to high

Tax plans of mutual funds

3 years

High

Other expenses that qualify under section 80C are, School fee of two children of the taxpayer and home loan repayment of the principal portion.


2 comments:

Gopi said...

Effective info, Thx buddy!!!!

Sushil Girdher said...

Mutual Funds and ELSS are the best way to save tax in todays highly competitive environment but these also include a portion of risk. proper Research and educative decision is required before investing in such instruments.