Tax Saving in India


Presentation Description

Tax planning is a must if you want to save on your income tax. This presentation will help you understand the concept of tax-saving and also show you different investment options like ELSS funds(, to help you earn a tax-free income.


Presentation Transcript

Tax saving in india:

Tax savin g in india


bASICS Taxes are one of the essential instruments for the survival of the state. The taxes collected by the government helps in running the development projects in the country. Taxes which apply to your expenses are ‘indirect tax’ and those which apply to your income are ‘direct tax’.

Tax saving:

Tax saving Deductions allowed under the income tax act help you reduce your taxabl e income There are a number of deductions available under various sections that will bring down your taxable income. The most popular one is section 80C of chapter VI A

Best Tax saving instruments under section 80c:

Best Tax saving instruments under section 80c Below is a list of some tax saving instruments under the section 80C: ELSS Fund (Equity-Linked Saving Scheme Fund) – It is a diversified mutual fund scheme which makes the investment amount eligible for tax exemption up to the limit of Rs . 1.5 Lakh National Pension Scheme (NPS) Unit Linked Insurance Plan Public Provident Fund National Savings Certificate


Conclusion ELSS fund, a tax saving mutual fund , has the highest rate of returns among all the tax saving instruments at about 15 to 18%. It has a lock-in period of 3 years, which is the lowest when compared to others. Ultimately, it depends upon your risk capacity and the financial goals.



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