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Tax Planning is an ongoing process, which covers various aspects especially related to various investment options. One should check out their tax planning not only to reduce your tax liability but also to contribute your financial growth and prosperity. One can avail tax rebates under income tax act by investing in life insurance schemes for the government life insurance corporation of India and many private companies like HDFC Life Insurance, Birla Sun Life Insurance, ICICI Prudential and even more. The government has announced may fund like Public Provident fund which is all time favorite because investment under taken in this is eligible for deduction under the 1,00,000 limit of Section 80C. Under this section if individual invest money up to maximum of Rs.1lac then investment is deductable from income. An individual can save their tax by investing in various loans like child insurance plan or any other investment in property. Individual can easily save tax and receive more profit. Various Products to choose on Saving Tax: Life Insurance: Life Insurance must have in everyone’s life because there are more tax benefits on life insurance. Premium on Life Insurance: At the time of purchase of the policy, an investment of 1 lakh or more can save you up to 30,900 in income tax. Premium on Health Insurance Policy: The maximum amount deductible is 15,000 per year for an individual and this can save tax up to 6,180 res. Equity Linked Savings Schemes (ELSS): It is a mutual fund schemes that invest in domestic equity market. In this, investment up to 1lakh is eligible for the deduction from your total income. You can save 30,900 in taxes by investing 1 lakh in ELSS. It has more potential for much higher returns comparing to other Tax Saving Schemes. ULIP: In unit linked Insurance Plan, The threshold limit has been increased from 3 years to 5 years. It provides efficiency in managing tax liability. Employees who are working in public and private sectors can easily use Tax Savings Schemes to reduce tax. Tax Saver Fixed Deposits: In this you can invest a minimum of 100 and maximum of 1 lakh and have a lock in the period of 5 years. On Investment of 1 lakh, one can save up to 30,900. National Saving Certificate: It is popular tax saving scheme in which assesses can avail the offer of NSC and PPF both at the same time. An individual can also enjoy the rate of interest and can invest their Money starting from 100.
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