Best possible investment to save as much taxes?I am a 28 year male with a CTC of 12.5 lakhs and I was hopi?

Question

I am a 28 year male with a CTC of 12.5 lakhs and I was hoping you can help me with use of a case study on what the best investments could I make to save maximum taxes based on the latest budget recommendations. I already have a housing loan with an exemption of 1.5 lakh. Besides this I have no other investments to save taxes..I have no children and dependants as well..I was hoping in having a mix of Public PF, Postal savings, some insurance covers, medical insurance etc which would help me in saving the maximum taxes for the upcoming financial year. My whole agenda is to invest amounts that I would otherwise pay as taxes rather than investing anything from my pocket :) I would appreciate if anyone could give me actual breakup of the amounts I need to invest to save taxes. Thanks in Advance..

Answer 1

Mediclaim - 10,000 Rs

Total investment of PPF etc - 100,000 /- including your PF contribution.

HRA is some thing you can seve on , ask CA how.

Answer 2

Hi. The current tax laws are highly simplified, and you can invest in any of the tax instruments you have mentioned, as well as in NSC, ELSS and Mutual Funds. However, do remember that returns vary from instrument to instrument, as do lock-in periods. Also, the returns on most are taxable at the time of maturity or withdrawal.

The best way to calculate how much you need to invest =

(1,00,000 - PF contribution - Capital repayment of home loan). The 1.5 lakh in interest exemption on home loans is over and above this amount. Since you have no children/dependents, education policy, or health policy for dependents does not apply, though you can get one for yourself. Several credit cards bundle a health insurance cover with the card and deduct the premium in monthly instalments. You can claim this deduction under your health insurance cover as well.

Answer 3

You may avail of the deduction up to Rs.100000/- under Section 88, by investing in various investment options. Avail of the 80-D concession by contributing to the medical policies. You may avail of housing loan from any financial institutions, and get the interest part of payment up to 1.5 lakhs p.a, as relief.

Answer 4

Deductions u/s 80D :

Ext. of Rs.15000/- invested in medical insurance premium.



Deduc. u/s 80C extent of Rs. 1,00,000/-

1) Contributions to PF, VPF, SAF.

2) Contributions to PPF.

3) To premium paid for LifeInsurancePolicy of self, ULIP, Dhanraksha.

4) To NSC / accrued interest on NSC.

5) To schemes of PSU's providing long term housing finance.

6) Time deposits with Post Office.

7) To ELSS of Mutual Funds.

8) Repayment of home loan principle.

9) Tution fees of full time education for 2 children - Rs. 12000/- each.

10) Investments in Infra-structure bonds.

11) Investment in Pension fund.- u/s 80CCC

12) Investments in Bank Fixed Deposits for 5 years.

Answer 5

you can use http://www.ratekhoj.com and specifically http://www.ratekhoj.com/fixeddeposit/taxsavingsfixeddeposits/index.php for possible tax savings investment options.