7 Replies to “i want to save an amount of Rs20000 from my taxable income?”


  1. Depends on which tax slab you fall in.
    If you are in the 30% tax slab, you might have to invest 66,666 in any of the tax saving instruments (NSC, Insurance, tax saver mutual funds, ELSS, etc as per your expected returns/ willingness to take risks).
    If you are in the 20% slab, the amount that needs to be invested might be around 1,00,000.
    You may also fall between the slabs. So the exact amount that need to be invested should be based on your earnings and the applicable tax slabs.



  2. IT Act 1961 Prescribes section 80C which has a long list of eligible investments (max Rs. 1 lac) for deduction from Taxable Income.

    In my view, priority of investnments should be fixed inteligently. Therefore it requires you to list down your investment avenues, your risk appetite, fund available for investment i.e. invezstible fund, expected / targeted return and % of fund allocations over available investment avenues.

    Now arrive at your total invetsment for deduction from taxable income within the prescribed limit of Rs. 1 lac. I would rather suggest, if you do not have any LIC policy for you and your spouse go for it.

    Prepare the list suggested in the way adviced and solve your problem.


  3. Invest in any of the 18 places given by the IT dept u/s 80C.
    The maximum deduction will be upto 1 lac.
    out of 18 these are some of them

    1.LIC insurance premium (including payment made by govt employees to the central govt employees’ insurance scheme and payment made by a person under children ‘s defered endowment assurance policy){subject to a maximum of 20% of sum assured}
    2.Amount deposited as term deposit for a period of5 years or more accordance with a scheme framed by the govt (applicable from Assessment year 2007-2008)
    3.Payment in respect of non-commutableDeffered annuity plan
    4.Any amount paid as tuition fee (not including any payment towards development fees/donation/payment of similar nature) whether at the time of admission or otherwise to any university/college/educational institutions in india for full time education

    5.Salary deducted by employer (incase of Govt employee)
    6.contribution to Statutory provident fund and RPF.
    7.contribution towards 15yrs PPF
    8.contribution towards approved superannuation fund.
    9.Subscription to National Savings Certificate VIII issue.
    10.contribution for participating in the ULIP of UTI
    11.contribution for participating in the ULIP of LIC mutual fund
    12.Payment for notified annuity plan of LIC or any other insurer.
    13.Subscription towards notified units of Mutual Fund or UTI
    14.contribution to notified pension fund set up by Mutual fund or UTI (i.e retirement benefit pension fund of UTI)
    15.Any sum paid including accrued interest as subscription to home loan account scheme of the National Housing Bank or contribution to any notified pension fund set uo by the national housing Bank.
    16.Any sum paid as subscription to any scheme of
    a> public sector company engaged in providing long term finance for purchase/construction of residential house in India.
    b> housing board constituted in India for the purpose of planning, development or improvement of cities/towns.
    17.Any amount towards the cost of purchase/construction of aresidential property (including repayment of loan taken from Govt. bank, cooperative bank,LIC,National Housing Bank,assessee’s employer where such an employer is a public company/public sector company/university/co-operative society)
    18.amount invested in approved debentures of, and equity shares in, a public company engaged in infrastructure including power sector or units of amutual fund proceeds of which are utilised for the developing, maaintaining,etc of a new infrastructure facility.







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