HAPPY RETIREMENT DAYS
THE LONGER THE DELAY, THE HIGHER THE COST
Eliminate Debt On Death, Disability
Protecting You & Your Family
Build A Winning Portfolio
Discliplined Investing For Long Term
Tax Saving Instruments
Under Section 80C of the Income Tax Act (I-T Act) premiums for life insurance covering you, spouse and dependent children are eligible for deductions up to 1 Lakh.
Where Section 80D, premiums for insuring the health of self, spouse and dependent children are eligible for up to Rs 15,000 deduction in a financial year. Paying for parents' cover makes you eligible for an additional deduction of up to Rs 15,000. If at least of one the insured is above 60 (a senior citizen for tax provisions), the deduction limit in that case is Rs 20,000.
These limits can include expenses of up to Rs 5,000 on preventive health check-ups. Cash payments for health check-ups are eligible for income tax deduction but health insurance premiums paid in cash are not.
Wealth Booster's Tax Saving Instruments
Rajiv Gandhi Equity Savings Scheme, latest and the best tax savings avenue for small investor tops the list of wealth booster's instrument. RGESS deduction u/s 80 CCG is available on 50% of the amount invested. The investors who invest up to Rs 50,000/- is eligible for claiming benefit and it comes with a lock-in period of 3 years.
You can claim Section 80C benefits for investments in Equity linked savings scheme (ELSS). It again comes with a lock-in period 3 years. These investments do not attract capital gains tax.
Unit-linked insurance plans, or Ulips, can be used to get insurance as well as equity exposure. ULIPs investments are eligible for Rs 1 lakh deduction under Section 80C. The maturity proceeds are tax-free.
Retirement Planning Tax Saving instruments
The employees' provident fund (EPF)
The Employees' Provident Fund (EPF) requires contribution from both employees and employers. Your contribution is eligible for deduction within the Rs 1 lakh Section 80C limit.
Five-year and 10-year National Savings Certificates (NSCs) are offering 8.6 per cent and 8.9 per cent a year, respectively. The investments are eligible for tax deduction under Section 80C, but the interest earned is taxable.
Senior citizens' savings
Senior citizens (60 and above) will get 9.3 per cent return in 2012-13 under the Senior Citizens' Savings Scheme. The maturity period is five years. The interest rate is one percentage point higher than the rate on five year government bonds.
National pension system
You have to contribute at least Rs 6,000 a year in the NPS account, which is eligible for deduction under Section 80CCD (the total deduction under Section 80C, 80CCC and 80CCD is Rs 1 lakh).
Maximize your savings and retain maximum from your hard earned money!