A Post on Explaining ELSS

This is the post that I will try to put up in lay man language as most of my friends, relatives really wanted to blogunderstand why to invest or not to invest money under ELSS for section 80C.

So where all you can invest to save tax if you are salaried employee, Insurance, PPF, NSC, ULIP,

Well I will concentrate on the ELSS – Equity linked Savings Scheme

ELSS is a type of mutual fund, where majority of the corpus is invested equity and equity related products.  Investment in ELSS has lock in period of 3 years and it has tax benefits. ELSS are not at all risk free , there is no fixed return , ELSS are open-ended and investor can subscribe to fund on any given day.  Continue reading “A Post on Explaining ELSS”

The Tax on Income & Tax Savings

As we heading towards the end of financial year 2012-2013, there is no room for procrastination now. If you do not plan your taxes

Punch cartoon (1907); illustrates the unpopula...

now, you will end up paying a hefty sum.

As a late planner, you will not get the maximum benefits from tax-savings instruments due to the notional loss in investment, but you can minimize the damage. For most of the people “Tax-Saving” brings to mind life insurance, Equity-linked saving scheme, NSC etc. under section 80-C of the Income-Tax Act. An individual can claim tax deductions of upto Rs. 2 lakh under 80C.

There are quite a few options you can opt for tax savings:- Continue reading “The Tax on Income & Tax Savings”

Tax Planning: Few Investment Tips

As we heading towards the end of financial year 2012-2013, there is no room for procrastination now. If you do not plan your taxes now, you will end up paying a hefty sum.

taxsaveAs a late planner, you will not get the maximum benefits from tax-savings instruments due to the notional loss in investment, but you can minimize the damage. For most of the people “Tax-Saving” brings to mind life insurance, Equity-linked saving scheme, NSC etc. under section 80-C of the Income-Tax Act. An individual can claim tax deductions of upto Rs. 2 lakh under 80C.

There are quite a few options you can opt for tax savings:-

  1. Life Insurance Premiums.
  2. Contributions to Employees Provident Fund.
  3. Public Provident Fund.
  4. NSC (National Savings Certificates).
  5. Unit Linked Insurance Plan (ULIP).
  6. Repayment of Housing Loan (Principal). Continue reading “Tax Planning: Few Investment Tips”