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



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



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.



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.



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.



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.



Life Insurance Schemes

• Depending on scheme

• Tax benefits

•

Investments in insurance schemesearn rebates under 80C.



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.



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.



HICH PRODUCT IS UITABLE FOR DIFFERENT

’GE S PEOPLE



vAccumulation stage.Accumulation stage.vConsolidation stage.Consolidation stage.

vSpending stage.Spending stage.

vGifting stage.Gifting stage.



Accumulation stageAccumulation stage

income tax saving schemes

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