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10 Best Investment Options To Save Tax

By SiliconIndia   |   Wednesday, January 8, 2014   |    7 Comments
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Bangalore: Most often we see people taking wrong decisions over tax saving instruments. The reason is simple—they take decisions at the last moment that to sometimes by the end of a financial year. Always try to do the tax planning in advance as it gives you enough time to understand and evaluate different options that would match your financial situation.

One thing, that you need to keep in mind while choosing these tax saving investments, is that they should be under Section 80C. Benefit of taking investments under Section 80C is that from gross total income certain investments are deductible maximum up to Rs.1 lakh.

1. Public Provident Fund (PPF)

The PPF will be the first choice as a tax saver in 2014 as it scores well on almost all parameters. When Fixed Deposits (FD) compared with PPF, the maturity and tax on the interest earned is exempted in PPF.

PPF investors will be provided with more options like opening new account in a post office branch or a bank, doing self paperwork without any agent’s help, periodicity and quantum of investment, liquidity, withdrawal of money (not beyond 50 percent of balance) after five years and flexibility to take loans. In addition some of the banks will also provide online investments. The PPF can be useful for risk-averse investors, self-employed professionals and those who are not covered by the Employees Provident Fund and other retrial benefits.

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Reader's comments(7)
1: Among them, I would prefer ELSS mutual funds as they would provide tax benefits and also good returns of 12% to 15%.... One could get on this... suresh... http://myinvestmentideas.com
Posted by:suresh - 23 Feb, 2014
2: Among them, I would prefer ELSS mutual funds as they would provide tax benefits and also good returns of 12% to 15%.... One could get on this... suresh... http://myinvestmentideas.com
Posted by:suresh - 23 Feb, 2014
3: Undue and non correct publicity is made by some elements and agencies about NPS to misguide half knowledged and innocent subscribers. In fact NPS model of pension plan is not worthy to participate in it as a subscriber. It is a ULFP running for benefit of number of middle level agencies like PFMs, selling agents, CRA, NSDL and others at the cost of subscribers. Profit of these broker grade elements in the form of service charges are fixed and well defined at each and every stage but return to be passed on to subscribers is totally undefined and it can be sometimes negative and sometimes positive but not more than saving bank account return. In present scenario of modus operandi adopted by NPS authorities, my perception is that over a span of 30 to 40 years individual subscriber can get net return over his gross investment will be between 5% to 6% only which is much less than well defined debt financial instruments. Even 5 to 6 months are over but NPS authorities have not passed on assured return option to private subscribers which has been approved by our parliament and concerned ministry. At the time of maturity, NPS authority passes on maturity corpas to an insurance or other financial company which offers annuity of 4% to 6% return to amatured subscriber who is already a senior citizen. In fact NPS do not have even a single feature of a pension plan at all.
Posted by:D A BHATT - 09 Jan, 2014
4: Undue and non correct publicity is made by some elements and agencies about NPS to misguide half knowledged and innocent subscribers. In fact NPS model of pension plan is not worthy to participate in it as a subscriber. It is a ULFP running for benefit of number of middle level agencies like PFMs, selling agents, CRA, NSDL and others at the cost of subscribers. Profit of these broker grade elements in the form of service charges are fixed and well defined at each and every stage but return to be passed on to subscribers is totally undefined and it can be sometimes negative and sometimes positive but not more than saving bank account return. In present scenario of modus operandi adopted by NPS authorities, my perception is that over a span of 30 to 40 years individual subscriber can get net return over his gross investment will be between 5% to 6% only which is much less than well defined debt financial instruments. Even 5 to 6 months are over but NPS authorities have not passed on assured return option to private subscribers which has been approved by our parliament and concerned ministry. At the time of maturity, NPS authority passes on maturity corpas to an insurance or other financial company which offers annuity of 4% to 6% return to amatured subscriber who is already a senior citizen. In fact NPS do not have even a single feature of a pension plan at all.
Posted by:D A BHATT - 09 Jan, 2014
5: Undue and non correct publicity is made by some elements and agencies about NPS to misguide half knowledged and innocent subscribers. In fact NPS model of pension plan is not worthy to participate in it as a subscriber. It is a ULFP running for benefit of number of middle level agencies like PFMs, selling agents, CRA, NSDL and others at the cost of subscribers. Profit of these broker grade elements in the form of service charges are fixed and well defined at each and every stage but return to be passed on to subscribers is totally undefined and it can be sometimes negative and sometimes positive but not more than saving bank account return. In present scenario of modus operandi adopted by NPS authorities, my perception is that over a span of 30 to 40 years individual subscriber can get net return over his gross investment will be between 5% to 6% only which is much less than well defined debt financial instruments. Even 5 to 6 months are over but NPS authorities have not passed on assured return option to private subscribers which has been approved by our parliament and concerned ministry. At the time of maturity, NPS authority passes on maturity corpas to an insurance or other financial company which offers annuity of 4% to 6% return to amatured subscriber who is already a senior citizen. In fact NPS do not have even a single feature of a pension plan at all.
Posted by:D A BHATT - 09 Jan, 2014
6: Undue and non correct publicity is made by some elements and agencies about NPS to misguide half knowledged and innocent subscribers. In fact NPS model of pension plan is not worthy to participate in it as a subscriber. It is a ULFP running for benefit of number of middle level agencies like PFMs, selling agents, CRA, NSDL and others at the cost of subscribers. Profit of these broker grade elements in the form of service charges are fixed and well defined at each and every stage but return to be passed on to subscribers is totally undefined and it can be sometimes negative and sometimes positive but not more than saving bank account return. In present scenario of modus operandi adopted by NPS authorities, my perception is that over a span of 30 to 40 years individual subscriber can get net return over his gross investment will be between 5% to 6% only which is much less than well defined debt financial instruments. Even 5 to 6 months are over but NPS authorities have not passed on assured return option to private subscribers which has been approved by our parliament and concerned ministry. At the time of maturity, NPS authority passes on maturity corpas to an insurance or other financial company which offers annuity of 4% to 6% return to amatured subscriber who is already a senior citizen. In fact NPS do not have even a single feature of a pension plan at all.
Posted by:D A BHATT - 09 Jan, 2014
7: Undue and non correct publicity is made by some elements and agencies about NPS to misguide half knowledged and innocent subscribers. In fact NPS model of pension plan is not worthy to participate in it as a subscriber. It is a ULFP running for benefit of number of middle level agencies like PFMs, selling agents, CRA, NSDL and others at the cost of subscribers. Profit of these broker grade elements in the form of service charges are fixed and well defined at each and every stage but return to be passed on to subscribers is totally undefined and it can be sometimes negative and sometimes positive but not more than saving bank account return. In present scenario of modus operandi adopted by NPS authorities, my perception is that over a span of 30 to 40 years individual subscriber can get net return over his gross investment will be between 5% to 6% only which is much less than well defined debt financial instruments. Even 5 to 6 months are over but NPS authorities have not passed on assured return option to private subscribers which has been approved by our parliament and concerned ministry. At the time of maturity, NPS authority passes on maturity corpas to an insurance or other financial company which offers annuity of 4% to 6% return to amatured subscriber who is already a senior citizen. In fact NPS do not have even a single feature of a pension plan at all.
Posted by:D A BHATT - 09 Jan, 2014
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