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Personal Income Tax

Sections Under which you can save tax

Under Sec. 80 C Under sec. 80 D Under Sec 24 Under Sec 80 CCGLife Insurance *Health Insurance Interest payment on Rajiv Gandhi EquityPPF Rs 35,000 Home loan Savings schemeNSC Upto Rs 2,00,000 Rs 50,000Home Loan RepaymentMutual Funs ( ELSS ) etc..Upto Rs 1,50,000

Investment Avenues ( Financial Asset Class ) under sec. 80 c

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How can you save ?Mr. X whose Annual Income is Rs 11,00,000

If he saves under Sec 80 c 1100000 1100000- Basic Deduction 250000 - Basic Deduction 250000Bal 850000 Bal 850000- Savings Under 80 c 150000 - Savings Under 80 c 0Taxable Income 700000 Taxable Income 850000

Rs 250000 to 500000 @10% 25000 25000 Rs 500001 to 1000000 @20% 90000 100000 Rs 1000001 above @30% NIL 30000Total Tax 115000 155000

*For Accurate calculation consult your tax consultant

Mutual Fund gives 80c benefit in ELSS ( equity linked savings scheme )

If you have risk bearing capacity , then ELSS is an ideal optionWealth creation potentialof equity markets cannot be denied.These are open ended diversified schemes, managed by professionalsELSS provide long term investing with one of the Shortest Lock-in period of 3 YrsYou can invest in ELSS and deduct upto Rs 1,50,000 from your taxable income under sec 80cIncome from ELSS is Tax free .

Look at Performance of few ELSS funds :

If he don't save under 80c

Save Rs 40,000

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In Long term Equity can perform very well and can be a reason for wealth creation..