I will be writing about the Tax Planning for the year 2009. How ever the budget is not yet announced, we have to wait till the election is getting over. But, learning some tips for the tax savings is important before submit your tax declarations. If you have not saved anything before forget it and think that from 2009 onwards utilize your all the tax exemptions and get the maximum tax benefits. Your hard earned money cannot be just given for the tax.
From my experience there are many people unknowingly paying the huge amount of tax and they could have saved that money by the wise tax declaration and investments. In this series of article I will be writing about the tax planning and tips where yon can invest for the tax savings.There are numerous options like Fixed Deposit (FD), Insurance, Donations,etc. to spend your tax money.
Apart from writing the tax savings tips, I would like to help people if they are interested in contacting me directly for the tax savings tips. I would be more interested in helping them without any fees. Also you can write your questions in the comments section. I will answer your questions.
Home Loans for Tax Savings
Taking the home loans is the good tax savings oppurtunity. Earlier I have written few articles about the home loans and tax benefits on the home loans. If you read the above article, it will help you to understand the basics of home loans and in what way you can save the money.
Income Tax act 1961, provides two section where you can use home loans for the Tax Savings purpose. These two sections are section 80c and section 24b. One for savings on home loans principal repaid and the another one for interest paid on the loan amount. For more details about the section and benefits please read the article here.
But in the recession time, it is not good idea to invest on the houses. This will be applicable to the people who has enough savings and want to invest money on the real estate. For others, it is not the correct time to invest on buying the new houses. For those who want to save money by not investing on the houses, in the next section I will write about the insurance and Fixed Deposite(FD) schemes.
Fixed Deposit for Tax Savings
Another good source for the tax savings is the Fixed Deposit scheme. from 2006, the government has extended the tax benefits as five-year fixed deposit schemes. In the existing the provision, you are eligible to claim the tax benefits up to Rs.100000. But, with the tax saver fixed deposit you cannot apply for the loan against fixed deposit. The interest rates on fixed deposit is decreasing rapidly, it may touch the 7% per anum mark with in next few months. It was golden time when the fixed deposit rate is above 10%. I have written a detailed article on how to start the fixed deposit for tax savings.
Update : Tax Planning for 2009 – Part 2
In this article I have written about the two sources where you can invest for the tax savings. In my next article I will be writing some more investment options like insurance,mutual funds,etc. with details. Hope the 2009 union budget will bring cheers in every one’s face. Till that time I will continue this series of tax savings article. Thank you for reading the article!!. Please post your feedback in the comments section.