Insurance:

Endowment Policies and Ulips:

For any endowment plans, it is 3.5 percent for the first year’s premium and 1.75 percent for the renewal premium. However, the investors should consider the service tax paid on premiums while calculating the returns. A TDS of 2 percent, if the total receipt crosses 1 lakh in financial year. As far as Ulips are concerned, the service tax is 14 percent on all charges, like mortality charges, AMC fees and switch fees.

Real Estate:

Real Estate Investment Trust (REIT):

Properties are taxed at slab rates only if the rent is received. The deductions available for rent includes property tax, repair costs and home insurance. The REIT units listed and traded in stock exchanges will be tax free but the short term gains are taxed at a lower rate of 15 percent. Rents received by REIT and distributed, will be taxed at the hands of investors as rental income.

Read More: 7 Tax Saving Investments That Suits Your Needs

You Must Make Money and Spend it Wisely