Most of the Income Tax payee try to save tax by saving under Section 80/C of the Income Tax Act. However, it is important to know the this Section in to detail that one can make best use of the options available for exemption under income tax Act. One important point to note here is that one can not only save tax by undertaking the specified investments, but some expenditure which you normally incur can also give you the tax exemptions. Here are some tips for you: Happy Reading..Happy Investing. Mehul Bheda

1. TAX Saving Guide
U/S 80-C
2014-15
Mehul Bheda (B.Com,RFC,CFP)
Certified Financial Planner

2. Most of the Income Tax payee try to save tax by saving under Section 80/C of the Income Tax Act. However, it is important to know the Section in to so that one can make best use of the options available for exemption under income tax Act.
One important point to note here is that one can not only save tax by undertaking the specified investments, but some expenditure which you normally incur can also give you the tax exemptions. Here are some tips for you:
Mehul Bheda (B.Com,RFC,CFP)
Certified Financial Planner

3. 1) HOUSING LOAN –Principal Amount / Stamp Duty
There is a provision that the payment made for repayment of the principal amount (not interest payment) of the Home Loan is eligible for a deduction under Section 80C if you have taken a home loan and you fulfill certain conditions.
( The Deduction OF Interest Component can be claimed U/s 24 Of Income Tax Act.)
“The Amount paid as Stamp Duty & Registration Fee is also allowed as tax deduction under Section 80C even if the Assessee has not taken Loan."
Mehul Bheda (B.Com,RFC,CFP)
Certified Financial Planner

4. 2) Education Fees / TutionFees
If you are incurring expenditure on education fees is also eligible for a deduction under Income Tax Act, You can claim a deduction of payment made for tuition fee to any university, college, school or any other educational institution.
It can only be claimed in respect of two dependent children and for fees to an educational institution within India and, for tuition fee only.
Payment as donation or development fee to an educational institution does not qualify
Mehul Bheda (B.Com,RFC,CFP)
Certified Financial Planner

5. 3) Life Insurance Premium
Life Insurance Premium (By LIC Or Any Private Insurer) Paid for Self , Spouse & Children are Eligible For deduction U/s 80-C.
From 1stApril 2013 Only Premium Equal to 10% Of Sum assured will be allowed.
Mehul Bheda (B.Com,RFC,CFP)
Certified Financial Planner

6. 4) Provident Fund / EPF
For Salaried Employees, PF (Provident Fund) is Default Investment Which Qualify For Deduction U/s 80-C.
Your contribution (i.e., employee’s contribution) is counted towards section 80C investments. You also have the option to contribute additional amounts through voluntary contributions (VPF).
Mehul Bheda (B.Com,RFC,CFP)
Certified Financial Planner

7. 5) Public Provident Fund (PPF)
Among all the assured returns small saving schemes, Public Provident Fund (PPF) is one of the best.
Current rate of interest is 8.7%.
Maturity period is 15 Years
Mehul Bheda (B.Com,RFC,CFP)
Certified Financial Planner

8. 6) Unit Linked Insurance Plan
All ULIPs qualify as life insurance policy and the premiums are exempted from income tax benefit. ULIPS area Combination Of Insurance & Invetments.
Our Suggestion :There are Other Investment Option Which can Yield better Return at Lower Cost. SO
AVOID INVESTMENT IN ULIPS
Mehul Bheda (B.Com,RFC,CFP)
Certified Financial Planner

9. 7 ) Five Year Bank Fixed Deposit
There are Special 5 years Bank Fixed Deposit Which are eligible For Deduction U/s 80-C.
Interest are Taxable so avoid
Mehul Bheda (B.Com,RFC,CFP)
Certified Financial Planner

10. 8) Five Years Postal Time Deposit (POTD)
POTDs are similar to bank fixed deposits. Deposits in 5 year time deposit qualify for deduction under section 80- C of Income Tax Ac.
Current Ineterest rate is 8.50%
The Interest is entirely taxable.
Mehul Bheda (B.Com,RFC,CFP)
Certified Financial Planner

11. 9) National Savings Certificate (NSC):
NSC is a saving bond, primarily used for small saving and income tax saving investment in India.You can purchase same through Post office. Current Rate of Interest is 8.5% ( 5 Years NSC) ,8.80% ( 10 Years NSC).
Ineterst Accrued Every year is liable to Tax, But Interest is deemed to be Reinvested and thus eligible For Section 80-C.
Mehul Bheda (B.Com,RFC,CFP)
Certified Financial Planner

12. 10) Senior Citizen Savings Scheme 2004 (SCSS)
An individual who has attained the age of 60 years or above on the date of opening of a/c or an individual who attained the age of 55 years or more and who has retired under VRS/SPL.
VRS, can open an account individually or jointly with spouse.
Current rate of interest is 9.20% per annum payable quarterly.
Interest income is chargeable to tax.
Mehul Bheda (B.Com,RFC,CFP)
Certified Financial Planner

13. 11) ELSS ( Equity Linked Saving Scheme)
There are SpecificELSS Schemes (Not all MF Schemes) under Mutual Fund , Eligible For Tax Saving U/s 80-C Of Income Tax Act.
ELSS Schemes have Lock In period Of Only 3 Years.
If You Continue to Invest in ELSS Scheme For Long term Than ELSS has Potential to generate Wealth For You.
Mehul Bheda (B.Com,RFC,CFP)
Certified Financial Planner

14. Mehul Bheda (B.Com,RFC,CFP)
Certified Financial Planner
+91 9819592326