Top Tax Saving
instruments & their Comparison for FY 2014-2015
It is less than four months time
for closure of financial year 2014-2015.
To avoid last minute rush, plan
your investments towards saving taxes
NOW.
We should not plan our taxes in
isolation. The larger investment plan must be aligned with tax saving
instruments to maximize returns. Though this should be done at the start of the
financial year, it is still not too late.
Here are some ways to claim tax
deductions based on your long term financial objectives.
1. You can save for amount up to
Rs 1, 50,000/- Under Section 80C.
2. Amount of Rs 15,000/- to 20,000/- Under Section 80D
related to health insurance premium.
3. Interest amount paid on education
loan can be claimed as deduction Under Section 80E.
4. Interest amount of Rs.150000/- is eligible for deduction Under Section 80C & Under
Section 24 for self occupied house property.
5. An additional deduction of
up to Rs. 1Lakh is granted Under Section
80EE on housing loan. (Conditions Applied)
Given
below is chart for comparison for schemes available Under Section 80C and their
real rate after considering the inflation
SCHEMES
|
AMOUNT
|
LOCK IN
|
PREMATURE WITHDRAWAL
|
RETURN AFTER
15 YEARS
|
RETURN AFTER CONSIDERING INFLATION AT 7%
|
PPF/EPF
|
150000
|
15 YRS
|
7 YR ONWARDS
|
₹ 5, 24,245
|
₹ 1, 90,337
|
ELSS
|
150000
|
3 YRS
|
AFTER 3 YRS
|
₹ 12, 20,559
|
₹ 4, 42,387
|
ULIPS
|
150000
|
5 YRS
|
AFTER 5 YRS
|
₹ 8, 21,035
|
₹ 2, 97,581
|
BANK FD/NSC/POST OFFICE
|
150000
|
5 YRS
|
AFTER 5 YRS
|
₹ 5, 09,961
|
₹ 1, 84,833
|
TRADITIONAL INSURANCE POLICY
|
150000
|
15 YRS
|
SURRENDER AFTER 5 YRS
|
₹ 3, 11,839
|
₹ 1, 13,025
|
A final word
Tax planning is an integral part
of personal finance. Plan your Tax investments based on your personal goals and
risk appetite. It is important to start your tax planning well before 31st
March, and to file your returns before the 31st -July each year.
Note:
Returns Assumed
1)
PPF/ EPF : 8.7% 2) ELSS : 15% 3) ULIPS : 12%
4)
BANK FD : 9% 5) TRADITIONAL INSURANCE POLICY : 5%
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