Please inform, is Postal Life Insurance covered under Section 80C? i.e. investment in PLI is eligible for deduction under 80C?

thanks

Babita

What are the other safest invest option other than Mahindra finance. What about hdfc fixed deposit.
Which are the safest mutual fund.

regards
JISHNU

You can invest part of the money in mahindra finance and remaining you can invets in the mutual funds also.

Thanks,
Krishna

As of now, the bank FD rates are very low. I don’t suggest you to invest in the bank FDs. You can go for the company FDs like mahindra, they offer good interest rates.
http://www.thinkplaninvest.com/2009/04/how-to-avoid-tds-on-fixed-deposit/

Thanks,
Krishna

regards
JISHNU

Thanks

Babita

Yes..surely you can avoid the tax, but submit the Form 15G.

Thanks,
Krishna

I am planning to invest in FD arround 2lakhs in ICICI bank for 990 days, can I avoid the tax on intrest on FD if I open the FD on my wife’s name she is a housewife.

Thanks,
Nitin

ELSS is investing in the mutual funds. In the mutual funds itself there is many category. I would advice you to choose the SIP(Systematic Investment Plans). In this plan every month you will be paying as the premium(minimum Rs.500). That will be invested in the equity market. When the market is high you will get the very good returns for the investment. If you have any other queries please reply to this comment or send me a mail with your mobile number. I will talk to you.

You can read part 2 of this article:
http://www.thinkplaninvest.com/2009/04/tax-planning-for-2009-part-2/

Thanks,
Krishna

Thanks
RD

Thank you for the feedback. You can deposit Rs.100000 under FD scheme. The percentage will be depend on the taxable income on you. Monday I am posting Part – 2 of this article, that will provide you more in depth knowledge on tax planning and various options under section 80c. I would like to help you, if you have any personal guidance on tax planning. You can reply to this comment with your details or send me a mail to krishna.sa at gmail.com. I will reply you with details.

For more details, look for the part 2 of this article

Thanks,
Krishna

Thanks for your article.Really it will be useful for everyone those who want to reduce the tax burden like me.

And i have one query, if we go for FD tax saving scheme, how much percentage will be deducted on returns?

Once again thanks a lot for a nice article.

Thanks and Regards
Kalam

That is great idea for investing in the Fixed Deposit scheme. Few points to consider while investing in the Fixed Deposit.

1)The term must be 5 years. You cannot with draw any loan or close the scheme before the specified year.

2) The deposit amount should be maximum Rs.100000

3)Apart from investing in the fixed deposit, the interest for the amount deposited is taxed. So, this is one drawback on this scheme. Unlike Post Office Savings are tax free, this is taxable income and you have to pay the tax for it.

4)Under section 80c, the maximum amount can deposited is Rs. 100000. As we know, the amount includes all other tax saving components like PF, PPF, Home Loans.

You can read the details here:
http://www.thinkplaninvest.com/2009/01/tax-savings-on-term-depsoit-under-section-80c/

Please invest it soon, banks will reduce the interest rates in coming months. It may come up to 7% p.a.

Thanks,
Krishna

I’m planning to invest in fixed deposit scheme this year for claiming under 80c, and of course, claim HRA also.

Thank you for reading all my articles. I would be happy to help you in saving the tax money from this year

First thing, there is no such limit like paying the taxes.Income tax act provides many provisions to eliminate the taxable amount from the total income. If some of the provisions fit into your category, then you have to use it properly from reducing the tax burden.

Some times it depend on your company also. Some caompanies provide you the option like claim the tax benefit for petrol bills and telephone bills. You have to utilize all those options.

If you stay in the rented house, you can claim HRA from the tax deduction.
Find the minimum of the following three options:
1. Actual house rent allowance received from your employer
2. Actual house rent paid by you minus 10% of your basic salary
3. 50% of your basic salary if you live in a metro or 40% of your basic salary if you live in a non-metro

Use the above calculation for the HRA. This is separate from the section 80c where you can invest for the Rs.100000.

If you have any more doubts please send me a reply. I would like to help you. If you are interested I can discuss with you in the free time through phone also.

Thanks.
krishna

Thanks for all the articles, I’ve been a passive reader and I enjoy reading your posts, quite useful and it keeps reminding me about saving my money as I’m very lazy and bad at it.

Last year – 2008-2009 – I’ve lost a huge sum of money in taxes because I didn’t plan it ahead properly. So this year – 2009-2010 – I’m thinking of saving every penny I possibly could.

My first question to you: how much minimum amount will I have to pay in tax if I’m a male earning 6 lakhs per annum? In other words, if I use all the tax benefits that I’m eligible to, how much amount of money is taxable in my income? And how much tax will I have to pay for that taxable income?

I stay at a rented apartment and living in a non-metropolitan city. I have not taken any home loans. So any tax savings one can do in home loans is not applicable to me. My basic salary is 2 LPA.

Thanks again and I’ll be waiting for your next article.