TAX SAVINGS

TAX SAVINGS PLANS

In Tax Planning there are several steps to be dealt.
We will explain all the steps herein below.
Planning for Current Year
The current year tax planning will give you remedy for this year only. Will be suited to the people who are in the edge of the current Financial Year.
The remedies will be,

1. Deposit in a 5 Year Bank Deposits for Income tax purpose.
The deposit will be for 5 year tenure and will carry a interest rate of around 9% at present.
Salient feature of the Scheme.
Say, a person in the tax bracket of 1.5L to 2.5L, saves Rs. 20,400 as tax in the year of deposit. Thus on an investment of Rs. 79,600/= he gets an interest of Rs. 9,000/= p.a. which works out to be 11.30% annualised.

2. Investment in single time Insurance Premium Policies.
All the Insurance Companies offer one time or 3 year Insurance policies to be invested on the month of March especially. They give 10 times cover for the amount invested in the policies.

3. Deposit in NSC.

The Deposit in NSC attracts around 9% Interest compounded annually. The deposit is for a period of 6 years.

These three can be made at any time but eventually will last for current financial year only.

Planning for Long term

1. Investment in Life Policies

Investment in Life policies will rank first in long term planning. This is both security and tax saver. This comes under EEE Scheme of tax saving.

2. Building a House on Loan.

Building a Own house on Loan will stand second. This is both a cost saving and tax saving measure. It gives a maximum of Rs. 2,50,000/= Income saving resulting nearly Rs.75,000/= tax saving.

3. Medicalim Policies.

This is a unique kind of tax saving involving both medical help and tax saving.

4. Pension Plans with Life Policies.

This policies stand as support in our elder life and also a tax saving measure now.