I want to start a plan for tax saving. Which is the best plan?

i want to start a savings for reduce my tax so which 1 is the best plan? i have already have a savings in SBI Mutual fund Tax gain plan. I have taken last july from a financial adviser. i need to take 1 more plan. so he is telling me to take Canara robeco tax gain plan. but one of my neightbour said mutual fund is risky. she is doing LIC. i’m really confused, which one is the best plan for tax saving. can i go for canara robeco or some other plan?

5 Replies to “I want to start a plan for tax saving. Which is the best plan?”

  1. PPF is the best among all but still if you want you can go for other options:
    1) NSC
    2) KVP
    3) Tax saver FD
    4) Mutual Funds – Canara is good one.
    5) Insurance like LIC
    6) ULIP 🙂 🙂

    Agents will suggest you to go for ULIP because it is beneficial for them and for companies but not for investor.

    If you are not satisfied with my answer and want more details, you can mail me..don’t worry i am not an agent 🙂 🙂 🙂

  2. mutual munds are a bit risky as the return like PPF,FD,NSC ,KVP are nt assured in mutual fund.but as an investor i personally feel that mutual funds gives better return the other financial instruments in long run with the tax benefits and lock in period of 3 yrs. if u r inversting in ELSS good ones are
    ICICI Pru Tax Plan (G)
    Can Robeco Eqty TaxSaver (G)
    HDFC Tax Saver (G)
    Reliance Tax Saver (ELSS) (G)
    i personally fell that for the current market this plans are good and investing in mutual fund is far better than taking life insurance or ULIPS to save tax as in lic and ulips majority of the investor money goes to the agent in form of various charges such as admin,fund,mortality,etc. so the more the risk higher the return so better to diversify the investments in a systematic manner.

  3. According to me, Investment under Provident Fund scheme is a very good option to reduce tax liability. In case you are salaried person your employer deduct PF from your salary and contribute approximate same amount from his funds and deposit it into your PF Account.

    In case you are not a salaried person, you can open your PPF account with SBI and deposit minimum amount of Rs.500 and maximum of Rs.70000 in a financial year to get tax benefit u/s 80C of the IT Act. Another benefit is the Interest you earned from this account is also not taxable.

  4. You should plan your investments & insurance. But the motive should not be tax saving.

    The motive of investments should be very high returns and,
    The motive of insurance should be very high risk cover (not high returns).

    If any tax benefit is attached to these plans, you should avail them.

    You should not buy a product/plan just for the sake of tax saving.

    If a non-tax-saving plan is giving you 40% more returns than ELSS, then what would you opt??


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