sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« Service Tax »
 How to get registered under goods and services tax
 Service Tax can’t be Levied on Activity of Collection of VAT on behalf of Commercial Tax Dept
 Why you should worry about June 15 advance tax date
 Five reasons why you should start your investments in tax saving funds now
 Income Tax Department Releases All 7 ITR Forms Check Details About New IT Forms
 Income tax benefits for senior citizens: Here is all you need to know in brief
 12 ways to avoid paying more for bank services
 I-T return filing: Income Tax offices, Ayakar Seva Kendras to remain open from March 29-31
 Top 5 money matters you must settle before March 31 From income tax returns to LTCG,
 Steep fines for missing March 31 income tax deadline
 CBEC clears some air on refunds under GST, central excise, service tax laws

Where to invest for saving more on taxes
March, 12th 2018

At a time when the country is going through an economic transition - with several rules and regulations coming into place - more taxpayers are seeking investment opportunities to optimise returns. Investment options are now becoming even more popular, in the wake of stagnant income tax rates. If you have not filed your returns for the year yet, here are some investment options that would help you mop up better returns:

1) ELSS or Equity Linked Savings Scheme: One such investment option that has gained traction in recent times is ELSS. It is similar to a mutual fund. however, there is an exception: the amount you invest in this ELSS instrument would be allowed a deduction from your total income. Also, the returns you make through this instrument will vary in accordance with the market.

IMF backs Indian economy, says on track towards positive growth

2) PPF or Public Provident Fund Scheme: With a lock-in period of 15 years, this investment option does not allow you to withdraw investments for a considerable period, but is a very popular investment scheme when it comes to saving taxes on returns. It may be noted that some amount can, however, be withdrawn over a period of five years from the date of investment. It is attractive because of the rate of interest at 7.60%, one of the highest in the market. Individuals should note that the deposits can be made in lump-sum or in 12 installments, but a joint account cannot be opened. The deposits qualify for deduction from income under Sec. 80C of IT Act and the Interest is completely tax-free.

3) 5-year NSC or National Savings Certificate: Roughly like government bonds, this investment option comes with a 5-year duration and an interest rate of 7.3 percent. It may be noted that the scheme is specially designed for government employees, businessmen, and other salaried classes who are Income Tax assesses. There is no maximum limit for making an investment, and there is no tax deduction at the source. These certificates can be kept as collateral security to get a loan from banks. On its maturity, it will fetch you an amount of pension based on the investment. Also, the deposits qualify for tax rebate under Sec. 80C of IT Act.

4) Post Office Savings Account: While it is not so popular anymore, given the fact that it offers a low interest rate of 4 percent, which is like any regular savings account. However, within the scheme, there is the Monthly Income Scheme (MIC), where you can put in a certain amount every month at an interest rate of 7.30 percent.

Customized investment options (Selective)

5) Senior Citizens Savings Scheme: This scheme is only limited to senior citizens above 60 years of age. It has a lock-in period of five years with an attractive interest rate of 8.4%, which is subject to quarterly revisions by the government.

6) Sukanya Samriddhi Accounts: This is another government scheme for empowering girl children, which matures as soon as the girl turns 10. It offers an attractive interest rate of 8.10 percent.

All the aforementioned schemes come in real handy while filing returns at the end of the year, as it will help you save a significant amount of money. It may be noted that all these investments are applicable for deduction under Sec. 80C of the IT Act. Hope these investment options will help you get better returns in future.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Outsourcing Company Offshore Software Outsourcing Software Outsourcing Company India Offshore Outsourcing Company India Software BPO Software Business Process Outsourcing Software Outsourcing India Offsho

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions