Tax saving schemes has been provided to encourage long term savings and investments. But investments should be done keeping your overall financial situation and future goals.
Life insurance is not a simple product; sometimes the simplest policies have many components with more understanding. You do not buy life insurance for your own; your family is one who needs protection. Life insurance plays a very important role in tax saving schemes. One can save tax from the deductions made by investments. These investments include investment with monthly saving schemes like savings in bond, mutual funds, and authorities working for planning and development of cities. It is very important that your future and future of your family should be secured. There are many ways by which you can save your amount, and one of the best options is to get an insurance policy.
A tax deduction helps the buyer to reduce the income tax on annual income by investing the funds on other activities. Under Section 80C, if person invest the money upto maximum of 1 lakh then certain investment are deductible from income. If you earn Rs. 4 lakh p.a and make the investment of 1 lakh then taxable amount will be from 3 lakh. An individual can save tax from various life insurance schemes like child loan, or any other investment in other property.
Public Provident Fund: In this scheme person will receive the invested amount without any interest. The minimum and maximum amount of the investment should be 500pa and 70000 pa. The person can invest to the limit of 1 lakh.
National Savings Certificate: The person can make unlimited investment in this scheme. Rate of interest is 8% compounded half yearly i.e. the effective annual rate of interest is 8.16%. If you invest Rs1000, it will become Rs1601 after 6 years.
Fixed Deposits: the maximum amount the person can invest is 1 lakh and interest earned is taxed. The tenure period of fixed deposit is 5 years. Fixed deposit cannot be pledged to get to loan and early withdrawals are not allowed.
ELSS: Equity linked saving schemes has a lock in a period of 3 years and the profit earned is tax free.
Tax Savings Schemes helps to save your tax with the investment in other activities. These financial plans not only provide you the money growth but also provide you the financial security at various steps.
Life Insurance: Life insurance savings schemes for government owned and life insurance Corporation of India and other private companies like HDFC Life Insurance, Bajaj Allianz, Birla Sun Life Insurance and ICICI prudential and many more.
Tax Savings with RGESS: It is the golden opportunity in tax savings with new retail Investors. An extra tax benefit on Rs. 25000 can now be obtained from an investment of maximum 50,000 and avail tax savings upto 5150.
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Life Insurance: Correct Path of Life
Life Insurance is the best way to protect the loved ones in case of an unexpected event. Various advantages and riders are provided by the Birla Sun Life Insurance Company. Pay your premium only one time with LIC Bima Bachat Plan.
Paying your Taxes has become Easier
Tax is necessary to be paid by all. No one can avoid paying taxes provided they are eligible for it or come under the taxable income category. Income tax slabs help a person to know if they have to pay tax, what amount they will need to pay and much more. There are many tax saving options that are available for availing deduction from the tax to be paid.
