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Tax-saving funds give better returns, but carry risks too
August, 20th 2012

Finished filing income tax returns for the previous year? Well, now you can start your tax planning for the current year. Yes, you heard it right. Or should we repeat the cliche: death and taxes are the only two things that are certain in life.

Okay, here is a bit of a problem you are likely to encounter while considering various investment options under Section 80C of the Income Tax Act.

For the uninitiated in tax matters, this is the Section which allows tax deduction on investments up to Rs 1 lakh. The popular investment choices under Section 80C are the public provident fund (PPF), national savings certificate, equity-linked savings schemes (ELSS), or tax planning mutual fund schemes.

 
 
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