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Saving Tax under section 80C

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Saving Tax under section 80C

Postby investordost » Sat May 24, 2008 11:42 am

Under section 80C of Income Tax Act, a tax payer can invest a maximum of Rs. 1,00,000/- in the following tax saving instruments which will allow him to deduct the invested amount (max Rs. 1,00,000/-) from his taxable income:

  1. Equity Linked Saving Schemes (ELSS)
  2. Life Insurance
  3. Pension plans
  4. Infrastructure bonds
  5. National Savings Certificate
  6. Provident Fund
  7. Public Provident Fund
  8. Besides, repayment of principal part of home loan is also eligible for deduction under the above section.
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Saving Tax under section 80C

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Re: Saving Tax under section 80C

Postby madhavendra » Thu May 29, 2008 12:37 pm

Dear InvestorDost,

I would like to bring to your notice that in the list of instruments under 80C, you have mentioned that pension plans have a maximum limit of Rs.10,000.With Effect From 1.4.2007 the maximum limit for pension plan can also be 1,00,000.Hence entire 1,00,000 can be invested for getting 80C benefit.Please rectify the mistake.
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Re: Saving Tax under section 80C

Postby investordost » Thu May 29, 2008 12:52 pm

madhavendra wrote:Dear InvestorDost,

I would like to bring to your notice that in the list of instruments under 80C, you have mentioned that pension plans have a maximum limit of Rs.10,000.With Effect From 1.4.2007 the maximum limit for pension plan can also be 1,00,000.Hence entire 1,00,000 can be invested for getting 80C benefit.Please rectify the mistake.
Thanks madhavendra for pointing out the error. The post has been corrected.

Expect a lot more contribution from you on the forum.
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Re: Saving Tax under section 80C

Postby kgyraman » Mon Jun 16, 2008 5:50 am

what are the strategies for investment under ELSS schemes? Is there a way of taking advantage of the vagaries of the stock market? When index is low can one invest in diversified equity funds and then shift to debt fund when index is high, keep invested there and again shift to Tax Saving funds when the index takes another dip?
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Re: Saving Tax under section 80C

Postby Ramalingam K » Wed Aug 03, 2011 12:53 pm

ELSS stands out among the other tax saving options. But PPF is also a better tax saving option. So it depends on your overall asset allocation. If you are looking for debt component then you can go for PPF. If you are looking equity component then you can consider mutual fund ELSS.

Regards,
RAMALINGAM K. MBA, CFP,
CHIEF FINANCIAL PLANNER,
HOLISTIC INVESTMENT PLANNER PRIVATE LIMITED.
www.holisticinvestment.in
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