best tax savings investment

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How to create Wealth while Saving Tax [email protected] | www.deepamfinvest.com

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Page 5: Best tax savings investment

While PPF offers some attractive benefits like:• Tax Rebate on Principal Amount Invested (Upto eligible limit under section 80C)

• Fixed Interest Rate, Tax-Free (Rate revised every year)

• Tax Free Withdrawals (6th Year onwards with some conditions)

PPF is essentially a 15-year investment product as the full amount cannot be withdrawn till completion of 15-years of opening the PPF a/c

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Page 8: Best tax savings investment

If Rs. 1 Lakh was invested each year on..

Or 1st working day of April

Rs. 1 Lakh

Rs. 1 Lakh

Rs. 15 Lakhs would have been invested in both instruments over 15 year period

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Page 12: Best tax savings investment

Similarly, ELSS has out perfromed PPF Returns over all 15-year periods ever since ELSS came into being in 1993-94

You should actively consider ELSS for Tax Savings u/s 80C if:

1. You have more than 10 years of work life ahead

2. You are looking for Wealth Creation in addition to Tax Savings

3. You can tolerate some volatility in the short - term

ELSS has the lowest lock-in period amongst all tax saving options

Besides..

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