What all investments in india have exemptions from Income Tax?



wanna to know details (maximum investment limit for exemption) about,

a) Bank Deposits
b) Equity based investments
c) Bonds & Debentures
d) Mutual Funds (MF)
e) Insurance Plans
f) Public Provident Fund (PPF)
g) Postal Savings

3 Replies to “What all investments in india have exemptions from Income Tax?”


  1. BANK DEPOSITES:Bank deposites will be taxed under the govt. acts in INDIA.
    EQUITY :Equity based investments are of two types.Those who have a pan card and an authorised brokerage agent will not be taxed,but he will be taxed for the brokerage.If u want to buy a large no. of shares then must have a pan card and must affiled to a brokerage company.KAARVY BROKERAGE is preferable.There will no tax on the equity purchased.Another type is high cost equity.This kind of equity are much costlier than others i.e.0f more than Rs.260.These are indirectly taxed under PROPERTY TAX.
    MUTUAL FUNDS:Mutual funds are also taxed.These are another type of equity.
    INSURANCE PLANS:These are not taxed till a limit.No tax will be imposed on LIFE INSURANCE PLANS.
    PUBLIC PROVIDENT FUND:These are not taxed.
    POSTAL SAVINGS:Much of the postal saving plans are not taxed.


  2. The combined value of all investements done under Section 80C, are eligible for tax exemption can be a maximum of Rs. 1 Lac

    i.e. you can either:
    1. Invest Rs. 50,000/- in PPF and Rs. 50,000/- in Insurance = Rs. 1 Lac tax exemption

    2. Invest the full amount Rs. 1 Lac in PPF = Rs. 1 Lac tax exemption

    It means that you can mix and match in any combination until the total value of tax exemption does not exceed Rs. 1 Lac

    Disclaimer: I am not a certified financial advisor. For accurate advice on taxation issues, please contact a CA.





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