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Personal Tax Saving Instrument

Sunday, February 15, 2009 | Labels: , , | |

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Government changes income band last year. Now taxable income start from above 1.5 lakhs till then you don't have to worry. Above this slab you automatically ignite to gone in worry. There is nothing to worry, if you do proper planning. Income Tax Department also gives extra space of one lakh to invest and save money. If you save money then your income tax will start 2.5 lakh. To save money you should know some instrument where Income Tax Department will give concessions. Here I had provide some instrument and there details for your help. Those instrument are widely used by Indian investor to save their money.


  • Life Insurance

  • Life insurance are one of the best solution to protect your life. Support your family even in your absence. 
    In market you have so many Insurance. choose as per your and your family's requirement.

    Life insurance are entitled to tax deduction under section 80c

    Pension plans are entitled to tax deduction under section80ccc

    Tax saving investment 

  • Public Provident Fund(PPF)
  • PPF scheme is offer you assured return and tax benefit under section 80c of IT act.Minimum investment Rs 500 and maximum Rs 70000 are consider to tax benefit under section 80c. The lock in period is 15 years with withdrawals allowed only after the 5 years of crossing. Rate of interest in this scheme is 8 % per annum., tax free interest.

    To open account PPF account contact to State Bank of India or Postal Department.

  • National Saving Certificate(NSC) 

  • The NSC scheme offers assured returns of 8 % compounded half yearly. The minimum investment is Rs 500 annually and there is maximum limit. There is lock-in period of 6 years investment up to Rs laks are entitled to tax benefits under section 80c.
  • Fixed Deposits with Scheduled banks
  • Fixed Deposit with a tenure of of 5 years opened with a scheduled bank is entitled to tax benefits. An FD for a minimum amount of Rs !00 up to a maximum amount of Rs one lakh in entitled for tax benefits under section 80c. Rate of interest currently are 9 %. In this scheme intrest is taxable.

  • Infrastrucure bond

  • Infrastructure are very essential part to develop the countries economy. To boost this sector IT Dept provide tax deduction under 80c for new NPO of Infrastructure sector with minimum lock in period must be 3 years.

    This blog help you to plan saving tax in this year as well as in future.

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