The time to start looking for tax saving options is here. The Income Tax Act specifies various instruments that are eligible for tax deduction under Section 80C up to a maximum of Rs 1,50,000 a year.
Though there are some months to go for the March 31 deadline to invest in these instruments it is best to space out your investments so that it doesn’t become a burden on you and to ensure that you do not miss the deadline.
The tax-saving investment made during a particular financial year can be claimed as a deduction under Section 80C for that financial year only.
If you invest the maximum Rs 1,50,000 in the specified instruments you can save tax up to Rs 46,350 (inclusive of cess) if you fall under the highest 30 per cent tax bracket.
However, the question that you may be asking is what are the investment options before you? Well, there are a host of options to suit your requirement and investment goals.
Read to know some of the best tax-saving instrument and what they have to offer to you.
Besides investment for the purpose of saving tax, you should also invest regularly in various assets including equity, debt, real estate and commodities. Investing to create wealth is a long term game with a financial plan and goals set for the future.
However, there are some basic caution one needs to adopt before putting in their hard-earned money into investment avenues. In ‘6 things you should follow before investing your hard-earned money’ we bring to you some of the steps you should take while investing.
Among the investment options that provide safety and decent returns is fixed deposits offered by banks. Some banks offer as much as 7-9 percent return annually. On top of it, if you have a fixed deposit of over a certain period you can also avail tax benefits.
In ‘Why bank fixed deposits are a good avenue to park your money’ we tell you why you should consider bank FDs if you are looking for safety and returns.
A number of New Fund Offers (NFOs) of mutual funds are open for subscription. The offers come with units at Rs 10. The NFOs are categorised into income scheme, growth scheme and ELSS schemes.
However, should you invest in NFOs when there are a multitude of tried and tested funds on offer? Read to know what experts have to say about the issue.
If you are investing in mutual funds, you will soon have to link your Aadhaar number to your investments. The government directed that all mutual fund investments must be linked to Aadhaar numbers by December 31 after which you may not be able to transact in your fund folios. To avoid such a situation ensure that you link Aadhaar with your mutual fund investments.
In ‘How to link Aadhaar to your mutual fund investments’ we walk you through the various ways you can link your mutual fund portfolio and your Aadhaar number.
Your retirement years can be productive one’s too where you earn regularly. However, some of us may have to rely on our investments for a regular monthly money flow that would take care of expenses and other leisure needs.