Anyone for 10 points?Tax investment plans..?

hi folks after lot of reserch i deposited 1500 p.m in ppf and 2k p.m in tax saver FD.i droped the plan of ELSS cause i heard it wont be eligible nxt it wise to do? I want to ask if i earn 38k p.m how much more should i invest and where?should i open 1 more tax saver FD?please answer asap

Anyone for 10 points?Tax investment plans..?
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3 Replies to “Anyone for 10 points?Tax investment plans..?”

  1. Yeah, ELSS is going to be removed when GST is implemented. The maximum you can save tax on your investment is as under

    Sec 80 C is 1,00, 000 per annum which includes PF, PPF, Life insurance, Tax saver FDs in banks, NSC, repayment of housing loan (principal), children tuition fees, Pension plans and ELSS (available presently may be removed from next year).

    Section 80CCF: Investment in Infrastructure Bonds
    From April, 1 2010, a maximum of Rs. 20,000 is deductible under section 80CCF provided that amount is invested in infrastructure bonds. This is in addition to the 100,000 deduction allowed under Section 80C.

    Section 80D: Health insurance, popularly known as Mediclaim Policies, provides a deduction of up to Rs. 35,000.00 (Rs. 15,000.00 for premium payments towards policies on self, spouse and children and (read as in addition to) Rs. 15,000.00 for premium payment towards non-senior citizen dependent parents or Rs. 20,000.00 for premium payment towards senior citizen dependent). This deduction is in addition to Rs. 1,00,000 savings under IT deductions clause 80C.

    Interest on Housing Loans Section
    For self occupied properties, interest paid on a housing loan up to Rs 150,000 per year is exempt from tax. This deduction is in addition to the deductions under sections 80C, 80CCF and 80D.

    My suggestion to you to consider increasing your contribution to PF called as Voluntary PF if you do not have any housing loans, children tuition fees, etc which qualifies for tax deduction.

  2. You cannot save your tax if you will invest in FD, always try some live insurance pland or ULIP plans, these are tax saving plans and you can invest upto 1 Lac. Lic and Kotak provide the best life cover plans.

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