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Sunday, January 16, 2011

Options to save money under tax section 80 C
By Malvika Sampat on January 13th , 2011(

Tax act is quite taxing and people often look ways to save the money rather than giving it as tax.
The best option to save money is to invest it under section 80C. Section 80c is the single most important aspect under tax provision.
This article gives a glance the various approved schemes for investing in section 80 C.
In order to plan to investment astutely know your tax liability based on the tax slabs issued by the government as per tax norms for the financial year 2010.
Existing investments, such as contribution to the Employees’ Provident Fund, repayment of housing loan and premiums for life insurance and health insurance can be used for Tax deductions.
With the announcement of new tax slabs this year, infrastructure bonds are good propositions to invest in. Apart from this, there are investment options like ULIPs and saving schemes provided by investment and insurance players in the market.
Mediclaim is an area which remains unutilised while tax planning and investment. Use health insurance plan to avail a deduction up to Rs. 15,000. Your tax exemption can be capped upto 20,000 for parents who are senior citizens.
Life insurance policies are also good option for  tax savings under 80C and will give return as well.
The Indian postal system offers a wide range of tax saving options along with higher interest rates. Most popular financial instrument of Indian postal system is -
Post Office Time Deposits
Post Office Monthly Income Plan
Post Office Recurring Deposits
National Saving Scheme
Public Provident Fund
National Saving certificates.
Your home loan and the annual tution fee you pay also helps you to save money under section 80 C.
Before finalising anything it is always better to consult a financial advisor to get things done in a way that suits you the best.

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