Tax saving investments india 2014
In the rush to make eleventh minute tax-saving investments, one always considers the investment with lowest lock-in period, highest returns and easy to invest options. But since taxation can eat into a big pie of your maturing returns, one should also assess how the investments are taxed upon maturity.
There are several options which come under the exempt-exempt-exempt EEE taxation ambit.
10 best tax-saving investments - Page5 - The Economic Times
So, an instrument that offers tax exemption at the time of investment, while the corpus is invested and earning as well as when an investor gets the money back upon maturity is always more beneficial than an option which is exempt-exempt-taxed at maturity EET.
The Employee Provident Fund corpus too is given out without deducting any taxes. The condition that one needs to meet is that the employee should complete five years in service to claim the amount tax-free. Also, if the amount is not invested in a recognized provident fund then the tax-benefit may be snatched away.
the latest updates & schemes in which you can save tax under sec 80c through mutual efulejeqih.web.fc2.complace - FundsIndia
Tax-saving equity funds Offered by mutual fund houses, equity-linked savings scheme ELSS have the shortest possible lock-in period among all the investment options enjoying EEE tax treatment. As gains from equity investments are tax-free if shares and units are held for more than a year, ELSS funds too offer tax-free returns as they can be redeemed only after the lock-in of three years culminates.
The dividends that one receives too are tax-free in the hands of investor as a dividend distribution tax is already levied before being doled out.
Life Insurance The most popular tax-saving investment of life insurance policies including traditional and unit-linked insurance plans offer tax-free maturity proceeds whether offered to investors themselves or heirs. But to receive the maturity amount tax free one needs to ensure that minimum five premiums are paid and the sum assured is 10 times the annual premium.
Sukanya Samriddhi Account The recently launched Sukanya Samriddhi Account SSA scheme for the girl child not only offers tax benefits under the section 80C, where one can invest and claim a deduction up to a maximum of Rs1. The finance minister announced during the Budget that the interest accruing on deposits in SSA will be exempt from income tax. Other Apart from these instruments which offer tax exemption at the investment stage, there are others where one cannot claim exemption while investing, but the earnings and the maturity proceeds are tax-free if held for long-term 12 months for equity.
These instruments are listed shares, equity and balanced funds, where no tax is applicable on gains if they are held for more than a year. Another good news is that although dividend amount needs to be declared in the income tax return, the amount received is fully exempt from taxes.
Tax-free bonds issued by infrastructure companies and institutions such as NABARD for long-term offer a coupon rate similar to interest rate. I am interested to know how to contribute for National Pension Scheme and my age is about 57 years. Your email address will not be published.
Yes, add me to your mailing list. Harsh commented on A Brief Introduction to GST. IN All Blogs Budget Highlights Quick Read Blogs Expert Tax Preparation. Let us examine some instruments that offer tax-free returns on maturity. The Long and Short of Capital Gains Tax Read more. Last Minute Tax Planning for Salaried People Read more.
February 4, at 6: Leave a Reply Cancel reply Your email address will not be published. June 20, rupali shivaji wagh commented on Document Checklist for Salaried Personnel Filing Taxes! June 19, Harsh commented on A Brief Introduction to GST.
We look at your life through taxes. Free Income Tax e-Filing. Videos on Income Tax.
We Have Our New App.