What are tax saving ELSS funds?
What are different tax saving(80C) options?
Following are the popular tax-saving investments that you can use under the 80C section:
- Home loan principal: If you are servicing a home loan, the principal amount (up to a limit of 1 lakh) is eligible for deduction under the 80C section.
- Provident fund: If your employer is deducting PF from your CTC, the entire employee-side contribution of the PF amount is eligible for deduction under 80C.
- Life insurance premiums: The premium amounts that you pay for life insurance policies for yourself and your family is eligible for 80C deduction.
- PPF: PPF or public provident fund is also another popular tax-saving instrument under the 80C deduction.
- Child’s tuition fees: The yearly tuition fees paid for your child’s schooling is also eligible for deduction under the 80C deduction section. Fees paid for pre-school is also eligible for deduction.
- Equity-linked savings schemes (ELSS): Tax-saving mutual funds, such as the 1 st ranked DSP BlackRock Micro Cap Fund Growth with 3-year lock period, gives investors zero tax liability on investments and paid dividends.
- Other investments: Additional investments that qualify for 80C tax deductions include unit-linked insurance plans (ULIPs), national savings certificate (NSC), national pension schemes, and the Kisan Vikas Patra (with a lock period of 5 years).
How much should I invest in tax-saving?
How do I pay less tax?
Till when can I finish tax-saving?
If you are a freelancer or independent taxpayer, the last day for making an ELSS investment is 31st March. If you are making an investment, please ensure that the fund allotment happens before 31st March. Hence, you should make your investments before 30th March before 2pm.
For employees, you need to submit your declaration proofs before December 31st or Jan31st. Please check with your HR department. To ensure you have your proofs ready, please ensure you have made your investments before these dates. The last day for you is also 31st March, however, you would have to claim a reimbursement from IT department as your proofs would not show the full amount.
What is the lock-in period in ELSS?
ULIP -5 yrs, FD 5yrs, PPF 15 yrs, NSC 5yrs
How does Lock-in work in SIP?
What are various tax slabs?
|Income Slab||Tax Rate|
|Income up to Rs 2,50,000||No Tax|
|Income between Rs 2,50,000 – Rs 5,00,000||5%|
|Income between Rs 5,00,000 – Rs 10,00,000||20%|
|Income more than Rs 10,00,000||30%|
|Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.
Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.
|Cess: 3% on total of income tax + surcharge.|
|*Income tax exemption limit for FY 2017-18 is up to Rs. 2,50,000 for individual & HUF other than those covered in Part(II) or (III)|