Income Tax Saving Schemes
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Transcript of Income Tax Saving Schemes
8/14/2019 Income Tax Saving Schemes
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AX SAVING INSTRUMENT
r e s e n t e d r e s e n t e d
b yy
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Income Tax av ng c emes
• Provident Fund
• Public Provident Fund
• Life Insurance Premium
• Unit Linked Insurance Plan (ULIP)• Equity Linked Savings Schemes of Mutual Funds(ELSS)
• Infrastructure Bonds
• National Savings Certificate
•
5 year deposits in Bank• Senior Citizens Saving Scheme 2004
• Post Office Term Deposit Account
• Health insurance
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Bank fixed deposit
• Interest-8% - 10% (depending on banks)
• Term-15 days to 5 years and above
• Investments – Minimum — Rs. 100 (depending on banks).
– Maximum — Unlimited (depending on banks)• Tax benefits:Investment on bank deposits, along with
other specified incomes, is deduction from taxableincome up to a limit of Rs.1,00, 000/- under Section80c.
• Other Benefits Safe, as deposits are insured underthe Deposit Insurance & Credit Guarantee Schemeof India.
• Possible to get loans up to 75- 90% of the deposit
amount from banks against fixed deposit receipts.
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Public Provident Fund(PPF)
• Interest- 8%• Term-15 years• Investments
– Minimum - Rs. 500/- – Maximum - Rs. 70,000/- in a financial
year
• Tax benefits –
Deduction on investment U/S 80C of I.T.Act 1961. – Interest income fully exempted from
income tax – Balance held in the P.P.F. account is
completely free from wealth Tax.
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National SavingsCertificate (NSC)
• Interest:8% (compounded half yearly)
• Investments : – Minimum investment Rs. 500/- No maximum
limit.
– Issued in denominations of Rs.100, Rs.500,Rs.1, 000,
Rs.5, 000 and Rs.10, 000.
• Tax benefits –
Qualifies for tax rebate or first 5 years undersection 80 C of Income Tax Act.
• Other benefits – Certificate can be pledged as security
against a loan to banks/ Govt. Institutions.
– Facility of encashment of certificatesthrou h banks.
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Infrastructure Bonds
• Interest: 5.5% to 5.6%
• Term:3 Years
• Investments: – Minimum investment Rs. 30, 000/-
– Maximum limit — Rs. 1, 00, 000.
• Tax benefits – Investments in infrastructure bonds
from various financial institutionsqualify for a tax rebate underSection 80c of the Income Tax Act
1961.
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Life Insurance Schemes
• Depending on scheme
• Tax benefits
•
Investments in insurance schemesearn rebates under 80C.
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Equity Linked SavingsScheme (ELSS)
• Lock in period: Three years
• Investments
– Minimum investment Rs. 5, 000/-
– Maximum limit — Rs. 1, 00, 000.
• Tax benefits
– Investments in ELSS earn are eligible fordeduction under 80C.
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Unit Linked Insurance Plans(ULIPS)
• Investments
– Depending on scheme.
Tax benefits
– Investments qualify under Section80C of the Income Tax Act. Maturityproceeds from ULIPs are tax free.
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HICH PRODUCT IS UITABLE FOR DIFFERENT
’GE S PEOPLE
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vAccumulation stage.Accumulation stage.vConsolidation stage.Consolidation stage.
vSpending stage.Spending stage.
vGifting stage.Gifting stage.
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Accumulation stageAccumulation stage
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