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Make Investment upto Rs 1.5 lakh to Save Tax in FY 2011 - 2012

Current open Infra Bond Application form

 

It pinches a lot when heaps of amount goes out of our income as tax deduction, then why not to spare a little bit of our income to tax saving instruments. Every year Government comes up with new avenues for tax savings to encourage us to utilize our savings in a better fashion. But most of us often scramble things at the last moment.

It's always better to plan things well before on time so as to catch hold of right investment opportunities. This will help you to determine which tax-saving investment option suits you the best.

Let's have a look at some of the tax-saving options available:
The maximum deduction under 80C, 80CCF and 80D put together is Rs 1,50,000. This implies now you can invest up to Rs 1,50,000 for financial year 2011-12 under section 80C (Rs 1,00,000), under section 80CCF (Rs 20,000) and under section 80D (Rs 30,000). Apart from this, you can also save on your education
loan expenses under section 80E.

Tax-saving instruments available under 80C (Maximum limit: 1,00,000):
You can invest a sum up to Rs 1,00,000 under section 80C. The section 80C has been further categorized into three parts: Market Linked saving schemes, Fixed Income saving schemes and Other expense related deductions.

  • Market Linked: Equity Linked Savings Schemes (ELSS Funds of Mutual Fund) with lock-in of 3 years and Unit linked Insurance Plans (ULIP) with lock-in of 5 years.
  • Fixed Income: Public Provident Fund (PPF), Employees Provident Fund (EPF), Bank and Post office Time Deposit Schemes (Fixed Deposits) with a lock in of 5 years, Pension Funds, Nabard Rural Bonds, National Saving Certificates (NSC) 5 years, Kisan Vikas Patra, etc.
     
  • Other deductions: Life Insurance Premium, Interest and Principal on Home loan and Children's Tuition Fees.
Tax-saving instruments available under 80CCF (Maximum limit: 20,000):
The Government has introduced another option this year, under the
income tax clause 80CCF, in the form of infrastructure bonds where you can invest up to 20,000 and claim for deduction. Infrastructure bonds issued by both public sector or state owned companies as well as private sector companies would qualify for investment under this section.

Tax-saving instruments available under 80D (Maximum limit: Rs 30,000):
You can invest a sum up to Rs 30,000 under section 80D. You can claim a deduction for payment of Medical Insurance Premium i.e Contribution to Central Government Health Scheme. As per the provisions of the Act, you can claim Rs 15,000 for self, spouse and dependent children. You can also claim additional of Rs 15,000 for parents contribution.

Tax-saving instruments available under 80E:
You can also claim for your
Education Loan for tax saving purpose as the the interest on the education loan is deductible under the clause 80E.

Choose tax saving Investments carefully depending upon your short term and long term requirement of funds. It's always appropriate to consult Investment Manager or Financial Planner before making any investment.
 

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Application form for Tax Saving Infrastructure Bond and more information

 

Current open Infra Bond Application form

 

 

Submit filled up application    Collection canter near you

 

 

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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

 

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

 

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

 

These Application Forms can be used for buying regular mutual funds also

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