How to maximize your Tax savings Under Section 80C of Income Tax Act of 1961

TOTAL REBATE ALLOWED IS 125000

(I)                100000 through investment qualified under section 80C as defined below

Options:

·                  Market Linked – ELSS / ULIP

·                  Fixed Income - PPF / NSC / Senior Citizen Savings Schemes / EPF / NABARD BONDS / Tax Savings Fixed Deposit.

·                  Others – Life Insurance Premium /Repayment of House Loan (Principal)/Children Tuitions Fee’s

Details also available at our website www.i2isolutions.org/tax_savings.htm

TAX SAVINGS OPTION RECOMMENDED UNDER 80C FOR REBATE OF EQUAVALENT AMOUNT UPTO ONE LAKH UNDER 80C OF INCOME TAX ACT 1961

1-      FIXED DEPOSITS – Investment tenure 5 years

National Housing Board (NHB) Suvridhi Tax Savings (Under 80C) Fixed Deposit Scheme

Investor Category	Period	Interest Rate(%.p.a)	Maximum Deposit	Maturity Value	Yield (%.p.a)	Effective Annual Yield(%.p.a.) –including Tax Saved in Highest Slab of30%
General	60 Months	9.25	100000	157970	11.59	17.77
Sr. Citizen	60 Months	9.85	100000	162670	12.53	18.71

2-      Mutual Fund – Investment tenure 3 years

 Tax Savings Equity Linked Savings Scheme’s

Scheme 1 year 2 year 3 year AXIS EQUITY LONG TERM FUND 17.70 15.60 13.60

Performance Track Record of suggested scheme as on date.

(II)             Additional Rs. 25000 through investment in RGESS qualified under section 80CCG

RAJIVE GANDHI EUITY SAVINGS SCHEME Under section 80CCG

·         Investment Tenure 36 months

·         One time investment opportunity in life time for additional exemption of Rs. 25000 income(over & above one lakh) if the applicant has never traded Shares via DMAT account & has gross Annual Income less than 12,00,000/-

·         The exemption is available to invest up to Rs.50000 to get rebate of Rs. 25000.

·         Eligible Scheme available only at the moment is HDFC RGESS from HDFC Mutual Fund & LIC NOMURA RGESS from LIC Nomura Mutual Fund