Saturday, May 2, 2009

Save your taxes with the plenty of investment opportunities!

Refer the table for different Tax-saving investment options available
Sub Category
Terms of Investments
Tax Exemption Details
  Min Term Min-Max Investment Section Max Tax Rebate Exemptions From proceeds Limitations
Life Insurance
Term Insurance Plan 5 Years No upper Limit *80CCC Rs. 100000 NA icon
Endowment Plan 5 Years No upper Limit *80CCC Rs. 100000 # # Exempted icon
ULIP 5 Years 15000-200000 *80CCC Rs. 100000 # Exempted icon
Pension Plan 5 Years No upper Limit *80CCC Rs. 100000 # Not Exempted icon
Retirement Plan 5 Years No upper Limit *80CCC Rs. 100000 # Not Exempted icon
Health Insurance
Age <65 1 Years   **80 D Rs. 15000   icon
Age >65 1 Years   **80 D Rs. 20000   icon
PPF 5 Years 500-70000 *80 C Rs. 70000 # Exempted icon
ELSS - Mutual Funds (annual) 15 Years 5000-Unlimited *80 C Rs. 100000 Not Exempted icon
National Saving Certificate 6 Years 100-Unlimited *80 C Rs. 100000 Not Exempted icon
Senior Citizen Saving Scheme 6 Years 1000-1500000 *80 C Rs. 100000 Not Exempted icon
Post Office Time Deposit Account 1, 2, 3, 4, 5, Years 200-Unlimited *80 C Rs. 100000 Not Exempted icon
Fixed Deposit - 5 Yrs More Than 5 Years 100-Unlimited *80 C Rs. 100000 Not Exempted icon
* The aggregate amount of deduction under all the relevant sections viz. section 80C, section 80CCC and section 80CCD shall not, exceed Rs 1 Lakh
** Tax exemption under sec 80D is over and above amount under section 80 C
*** However in cases the premium paid in excess of 20% of the capital sum assured within a year, benefits paid excess of premiums will be taxable and insurance sum assured will be taxable
## Under Section 10(10D) of the Income Tax Act, any sum received, other than the sum received under Keyman Insurance Policy, including bonus is exempt from tax.
### The TDS limit is Rs 10,000 in case of interest payment on fixed deposits by a bank
# Amounts received on surrender (whole/part) of annuity plan, amounts received as Pension is taxed as income.
Disclaimer -  "Above is a broad understanding of the Income Tax Provisions and therefore is not specific advise in regard to your Personal tax and investment matters. Kindly contact your tax consultant for exact calculation of your tax liabilities".

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