7 Replies to “Can u plz suggest me some tax saving instruments which r not taxable even on maturity?”

  1. Interest earned on Municipal Bonds is not taxable by the IRS. I would consider them tax saving instruments because the interest income is tax free.

  2. In India, you can invest in an ELSS (Equity Linked Saving Scheme) mutual fund. These are available from almost all the mutual funds. These have a lock-in period of 3 years. The amount you invest upto Rs. 1,00,000 will be deducted from your income in the financial year when you make the investment. The returns that you earn (when you sell the units of mutual fund after three years) is also tax-free.

    You can also invest in an insurance plan which has an investment component also (e.g., ULIPs or endowment plans). These are sold by all the insurance companies. Again all the receipts at the end of plan term are tax free.

    Another option is to invest in PPF (Public Providend Fund). This has a 15 year lock-in. These are safest (guaranteed by the government) but the returns are also low (8%).

  3. investment in public provident fund is a good option you earn non taxable interest @8% withdrawals allowed after first five years up to 50% of balance in the account. tax rebate 20%of amount deposited . it is non attachable &non taxable at thetime of withdrawal

  4. dont go with ppf – its interest rates are falling with every budget.

    better invest in mutual funds – u’ll get much better returns on investment with low risks.

  5. Greetings of the day to you,

    Please find below the Return On Investment in Mutual Funds for Tax Saving Purpose. Please note there is a lock period of three years if you invest in Tax Saving Mutual Funds before that you cant redeem. The below is the actual return in the past and it may not be the same in future.

    Out of so many funds I suggest you to invest only in the First Two/Four Funds.

    Fund Name 1-Month 6-Month 1-Year 3-Year 5-Year
    Magnum Taxgain 3.99 39.65 42.95 69.43 60.66
    HDFC Taxsaver -0.26 27.46 25.37 53.92 52.95
    Sundaram Taxsaver 2.6 38.74 24.32 50.95 47.61
    Pru. ICICI Tax Plan 1.23 25.96 22.92 49.69 51.08
    Principal Tax Savings 5.01 43.56 39.4 45.3 49.43
    HDFC LT Advantage 3.82 30.04 21.88 44.27 56.42

  6. mutual funds for the short term is the way to go.

    exim policy is going to change now… and earnings even PPF and NSC post office savings etc. will be taxed.

    so invest in mutual funds.

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