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Project Investment in Tax Saving Product - An Overview

This document provides an overview of tax saving investment products in India. It discusses various investment options that are eligible for tax deductions under sections 80C, 80D, 80E, 80CCG, 80TTA, and 24 of the Indian Income Tax Act. Some of the major tax saving investment options mentioned include the Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS) mutual funds, life insurance premiums, National Pension System (NPS), tuition fees, and interest payments on home loans. The document provides details on the tax benefits, eligibility criteria, and caps on deductions for each of these options to help investors choose tax-efficient investment products.

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Akshay Dakhale
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260 views12 pages

Project Investment in Tax Saving Product - An Overview

This document provides an overview of tax saving investment products in India. It discusses various investment options that are eligible for tax deductions under sections 80C, 80D, 80E, 80CCG, 80TTA, and 24 of the Indian Income Tax Act. Some of the major tax saving investment options mentioned include the Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS) mutual funds, life insurance premiums, National Pension System (NPS), tuition fees, and interest payments on home loans. The document provides details on the tax benefits, eligibility criteria, and caps on deductions for each of these options to help investors choose tax-efficient investment products.

Uploaded by

Akshay Dakhale
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Investments in Tax Saving

products - an overview

NAME - ALAKNANDA ARUN DANDGE

ADMISSION NO. - HPGD/JA16/3131

SPECIALIZATION – FINANCE MANAGEMENT

WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT (WESCHOOL)


DECEMBER 2017
Ø Tax Saving Investment Products in India
EPF / VPF Deduction through salary
Life Insurance Premium
Public Provident Fund Contribution
Sukanya Samriddhi Scheme
National Savings Certificate & NSC Interest
Fixed Deposit in Scheduled Bank
Unit Linked Insurance Plan
Mutual Fund / ELSS
Infrastructure Bonds
Children Tuition Fees
Deposit under Senior Citizens Saving Scheme
Post Office Small Savings Schemes
Kisan Vikas Patra
RBI Savings Bonds
New Pension Scheme
Medical Insurance for Self, family and Parents
Education Loan Interest Benefit
Rajiv Gandhi Equity Savings Scheme
Interest on Savings Bank account
Deposit Scheme for Retiring Government Employees
Deposit Scheme for Retiring Public Sector Employees
Investment in Shares
Investment in the Farmhouse
Investment in the House
Ø Investment Under Section 80C
Ø Safe Investments

Ø Less interest rate

Ø Less liquidity

Ø Overall Benefit limited to Rs.150000

Ø Major Products –
Ø PF / VPF deduction through Salary

Ø Life Insurance Premium

Ø Sukanya Samriddhi Scheme

Ø Public provident fund (PPF)

Ø National Savings Certificate (NSC) / Interest

Ø Mutual Fund / ELSS

Ø Housing Principal including Registration/ Stamp Duty


Ø Investment Under Section 80D
Ø Safe Investments

Ø Required Investment

Ø Medical Insurance for self, family and Parents

Ø Benefits Limited to –
Ø Rs.25000/- In case of Individual, Spouse & Children

Ø Rs.50000/- In case of Individual, Spouse, Children and parents below 60 years

Ø Rs.55000/- In case of Individual, Spouse, Children and any one parent above 60 years
Ø Investment Under Section 80E
Ø Safe Investments

Ø Education Loan Interest Benefit

Ø For Higher education of self, Spouse, Children

Ø No capping on amount
Ø Investment Under Section 80CCG
Ø Safe Investments

Ø Rajiv Gandhi Equity Savings Scheme

Ø For Small Business Growth

Ø Investment in specified shares and Mutual funds

Ø Benefits Limited to –
Ø 50% of amount invested in equity shares. However, the amount of deduction under this
provision cannot exceed Rs.50000
Ø Investment Under Section 80TTA
Ø Safe Investments

Ø Interest on Savings Bank account

Ø Self Declaration

Ø Maximum deduction is allowed under Sec-80TTA is Rs.10000


Ø Investment Under NPS
Ø Safe Investments

Ø Interest in New Pension Scheme

Ø 3 Variants

Ø For New Pension Scheme - Employer Contribution, 10% of Basic Salary with no maximum
capping is tax deductible under section 80CCD2

Ø For Additional NPS Contribution (External Investment), maximum tax deduction of Rs.50000
under section 80CCD1B.

Ø For NPS (External Investment), Maximum deduction is allowed under 80CCD1 section is within
the overall Sec 80C limit of Rs.150000.
Ø Investment Under Section 24
Ø Safe Investments

Ø Very less Liquidity

Ø Loss on Self-Occupied house property (Housing loan interest)

Ø Only one self occupied property is considered for tax benefit on interest paid

Ø maximum of Rs.200000/- only i.e. Total amount allowed for a property is


Rs.200000/-
Ø Steps for Investment Desicion
Age of investor
Look at own and family life stages and responsibility, needs at every stage
Decide short term, midterm and long term financial goals
Identify risk appetite own and family can take
How much Savings one can do on periodic basis
Corpus fund required for emergencies
Financial growth requirement
Depending on above factors, decide how much part of savings to be put in short
term, long term investment
How much % of savings can be put in safe and risky products
Ø Conclusion
Ø After overall analysis of own requirements, deep study of investment products and market
study, one can choose right investment product for investing hard earn money
Thank You

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