Saving tax can help you reach your financial goals

Written on Tuesday, October 20, 2015
By Kumar Pushpraj

Facebook   Twitter   Google+   LinkedIn   Pinterest

If your income is taxable, why not do something that will help you save tax and provide for future financial requirements at the same time. The funds that you would save as tax will help you with things like buying a better home, your child’s education or your own retirement. When it comes to tax planning, every year we look for some better and efficient tax saving schemes, so that we can save a little extra. But why settle for a little extra, when you can save up to Rs. 78,795 on an investment of Rs. 2,55,000.


Tax Free Incomes

The following incomes are completely exempt from income tax without any upper limit. You can choose to invest in related options and go for maximum savings.


1. Interest on PPF/GPF/EPF.


2. Interest on GOI/other approved tax free bonds.


3. Dividends on Shares and on Mutual Funds.


4. Any sum received under a life insurance policy (including the sum allocated by way of bonus on such policy) either on death of the insured or on maturity of life insurance plan. However, in case of life insurance policies issued after March 31, 2004, exemption on maturity payment u/s 10(10D) is available only if the premium paid in any year does not exceed 20% of the sum assured.


5. Interest on savings bank account in a post office.(Exempt up to Rs 3,500 in an individual account and Rs 7,000 in a joint account under section 10 (15) (i) )


6. Long term capital gain on sale of shares and equity mutual funds if the security transaction tax is paid/imposed on such transactions.


Dividend Income: Dividend income from companies /equity-oriented Mutual Funds is completely exempt in the hands of investors. Dividend is also tax-free in the hands of investors in case of debt-oriented Mutual Fund schemes.


Gift Tax: Gift tax was abolished with effect from October 1, 1998. The gifts are no longer taxable in the hands of donor or receiver. However, with effect from September 1, 2004, any gift received by an individual or HUF will be included in taxable income, provided the amount of gift exceeds Rs 50,000.



Click Here to know efficient ways of tax planning and grab a free copy of Tax Saving Guide 2015-16.

Get More Info Now!


 Popular Tags

(1) Child Education(2) Child Future Planing(1) Children Future Planing(2) Equity(1) Financial Goal(1) Financial Planing(2) health Insurance(2) Insurance(1) Investment Options(2) Investments(1) Life Insurance (4) MIP(1) Mutual Fund(1) Mutual Funds(5) National Pension System(1) NPS(5) Personal Finance(2) Retirement(1) Retirement Planing(2) SIP(5) Systematic Investment Plan(2) tax calculator(2) Term Insurance(1)Awards(2)Balanced Mutual Funds(4)Bond(2)Bonds(15)Budget 2016-17(4)Budget 2018(2)Child Education(1)Child Insurance(8)Children Education(4)Children Future Planing(3)Children Future Solution(2)Children Future Solutions(2)Claims(7)Corporate NPS(1)Credit Card(2)Debt(6)Debt Funds(2)Early Investing(22)ELSS(4)EPF(2)Equity(9)Financial Assessment(7)Financial Goal(19)Financial Goel(1)Financial Planing(2)Financial Planning(42)Fixed Deposits(3)Fixed Income Funds(1)Fixed Tenure Fund(1)General Insurance(6)GOI Taxable Bonds(2)Gold(1)GST(1)Health Insurance(28)Home Insurance(2)Income Tax(2)Indian Economy(1)insurance(41)Insurance Grievances(5)Interview(2)Investment(5)Investments(82)ITR(7)Life Insurance(21)Life style(20)Mutual Fund(71)Mutual Funds(30)National Pension System(4)NFOs(1)NPS(6)Overseas Insurance(1)Pension Plan(12)Personal Finance(9)PPF(2)Quiz(1)Retirement(28)Retirement Goal(7)Retirement Goel(1)Retirement Planning(5)Save Tax(6)shikha(1)SIP(14)Sovereign Gold Bond Scheme(3)Start Smart(2)SWP(3)Systematic Investment Plan(3)tax free bonds(1)Tax Planning(37)Tax Saving(44)Term Insurance(2)test(1)Travel(1)Travel Insurance(5)ULIP(5)ULIPs(2)Wealth Creation(93)