Monday, July 4, 2016

Maximise Tax Savings

Saving Tax Online

 

Saving tax is not a priority for most new earners because the salary is not too high, nor the knowledge regarding taxability of instruments. Do not be obsessed with investing just for saving tax as some expenditures may be useful

However, it is important to brush up your tax awareness at the earliest. Start with avenues that offer tax deduction of `1.5 lakh under Section 80C. Some of these include the EPF, PPF, NPS, 5-year tax-saving fixed deposits, ELSS, Ulips, life insurance, etc. Then opt for investments that fit in with your goals and needs, or those that are being made by default. The latter could include EPF or the NPS. You could also use insurance and health care related expenses for dependants astutely. These would include premium spent on health plans under Section 80D, which is up to `25,000 for self and dependants, and `30,000 for senior parents.

I only have a working knowledge of tax as it is not need of the hour for me. Still, I am saving tax through investments in the PPF and gold ETFs.

Another important thing is to calculate the returns from your investments after considering the tax. So Palit should undersrand that gold ETFs will invite short-term or longterm capital gains tax.

You can also save tax by negotatiating with your employer for a a tax friendly salary structure.

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Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saver Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

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