7 Replies to “investment for tax saving?”

  1. EL SS investment are best option for tax saving instrument or else 8% growth fund such as NSC,PF,5YEARS FD,are best bet.

  2. (1)Super funds

    sacrifice your salaries and wages into super funds, which just tax you 15%. otherwise, your salaries and wages will be taxed at marginal tax rate

    (2)Trust funds

    put your money into a trust and your kids are the beneficiaries. the trust will divide your money to your kids. so they can benefit from the tax free component.

    eg. you have $ 24000 and 4 kids. Normally you need to pay (24000-6000)X15%= $ 270 tax. If you put your money into a trust, the trust will divide the $ 24000 to your 4 kids with $ 6000 each. so no tax you need to pay.

    (3)capital market
    any loss from your investment can deduct your income

    Do I make sense?

    P.S. dont try to any tax evasion, penalties and imprisonment may apply. Avoid tax legally.

  3. Deductions u/s 80C
    1) Contributions to EPF, VPF, FPS, Approved Superannuation Fund.
    2) Contributions to PPF.
    3) To premium paid for Life Insurance Policy of self/spouse/children, ULIP, Dhanraksha.
    4) To NSC VIII issue / accrued interest on NSC.
    5) To schemes of PSU’s providing long term housing finance.
    6) Time deposits with Post Office.
    7) To ELSS of Mutual Funds.
    8) Repayment of home loan principle.
    9) Tuition fees of full time education for 2 children.
    10) Investments in Infra-structure bonds.
    11) Investments in Bank Fixed Deposits for 5 years.
    12) Investment in Pension fund.- u/s 80CCC

  4. HMT provided the complete list what is permisible in 80C.

    Out of this I vote for ELSS in risky investments & PPF for secured investments.

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