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It’s that time of the year when people run around, searching for ways to save tax. In this matter, Section 80 C of the <keyword id="6354751" type="COMPANY" weightage="20" keywordseo="Income-Tax">Income Tax</keyword> Act gets the most amount of attention from investors, as it allows tax exemption through some popular investment instruments. Premiums paid for life insurance policies, investments in <keyword id="762633" type="UNKNOWN" weightage="20" keywordseo="equity-linked-saving-schemes">Equity Linked Saving Schemes</keyword> (<keyword id="103549" type="CITY" weightage="20" keywordseo="ELSS">ELSS</keyword>), five-year fixed deposits, National Savings Certificates (NSC), Public Provident Fund (<keyword id="76579" type="CITY" weightage="20" keywordseo="PPF">PPF</keyword>) and investment in Sukanya Samriddhi Yojana are some such instruments. 
 
Among these, ELSS has the potential to beat the long-term returns from all other investment options. It also allows you to save tax up to Rs. 1.5 lakh under Section 80 C. Let’s understand what ELSS is and what are the associated benefits through this article. 
 
What is ELSS? 
Equity Linked Saving Schemes (ELSS) are open-ended mutual funds with at least 65% exposure to equity. Although there’s a high degree of risk involved in this investment, it is beaten down in the long run. The returns earned through ELSS funds have outperformed other investment instruments in the long run. 
 
According to the CRISIL - AMFI ELSS Fund Performance Index in December 2016, ELSS funds as a mutual fund category have returned 3.35% in the last year, 16.64% in three years, 17.71% in the last five and 10.61% in 10 years. 
 
The minimum investment in ELSS has to be Rs. 500, while there’s no limit on the maximum amount you can put in. ELSS comes with a lock-in period of three years and withdrawal cannot be done before the completion of the stipulated period. On completion of the stipulated period, you can either redeem your scheme or continue with it. Returns from ELSS is tax-free on completion of a year. 
 
Why is ELSS your best long-term bet? 
ELSS has proven to be beneficial in terms of saving tax and yielding returns. Following are the benefits of ELSS: 
 
• ELSS allows you to claim tax deduction of up to Rs. 1.5 Lakh under Section 80C of the Income Tax Act. The proceeds on redemption of the scheme after three years of lock-in is also completely tax free. 
 
• Compared to PPFs, NSC and fixed deposits, the lock-in period associated with ELSS is relatively shorter, indicating more liquidity. 
 
• The highest ranked ELSS funds have provided a CAGR of around 20% in the last five years – far more than options such as PPF and NSC which can provide returns in the range of 8-9%. Not just that, your ELSS returns are tax-free. 
 
• This scheme is highly affordable, as the minimum amount you can invest is only Rs. 500. If you don’t have a lump sum amount, you can even invest through Systematic Investment Plans (SIPs), depositing a small amount every month. 
 
• There is no fixed maturity period. Investors can stay invested as long as they want. 
 
• Investors earn dividends even during the lock in period and it is tax free. 
 
• The scheme forces you to stay invested at least for a period of three years without any interruptions. Moreover, if you opt for SIPs, you indulge in a more disciplined saving habit which ensures high capital growth. 
• 
ELSS and other instruments that allow exemptions under Section 80C 
 
Here is a comparative analysis of ELSS and other popular investment instruments:

Looking to save tax? Give an ELSS fund a chance – For tax savings & wealth creation

Both Public Provident Fund (PPF) and Equity Linked Savings Scheme (ELSS) are saving schemes that are eligible for tax benefits. Hence investors are often confused on which one to choose among these two. Are they similar? No doubt PPF has been popular among the investors for so long. However, these days, ELSS seems to be picking up fast due to the higher returns it promises. In fact, it is important to know that there is nothing similar between these two investment vehicles beyond the tax benefits they carry. When you know the About PPF Public Provident Fund (PPF) is a savings scheme created by the government that assures guaranteed returns and some attractive tax benefits under Section 80C. The government revises the interest rates of this scheme during every quarter. For example, the interest rate for the current quarter Q 2 (July-September), FY-19 is fixed at 7.9%. About ELSS <keyword id="3832316" type="PERSON" weightage="20" keywordseo="Equity-Linked-Saving-Scheme">Equity Linked Saving Scheme</keyword> (ELSS) can be described as a type of <keyword id="6354820" type="DEFINITION" weightage="20" keywordseo="mutual-fund">mutual fund</keyword> that carries tax benefits under the section of 80C of the Income Tax Act, 1961. Currently, it has become immensely popular due to its high returns and the lowest lock-in period. PPF Features Low-Risk Since PPF is a government-backed savings scheme, it is considered as a safe investment option available in India. Since the capital and returns are safe, it is one of the most popular investment options. Tax Benefits Since the investments in PPF fall under the exempt-exempt-exempt (EEE) category, the PPF deposits are never taxed at any point. The investment up to a limit of 1.5 lakhs per annum, the monthly interest and the maturity amount is completely tax exempt. Lock-in Period Deposits in PPF are characterized by a mandatory lock-in period of 15 years. Nevertheless, it is possible to take a loan on PPF deposits starting from the 3rd to 6th financial year from the date of opening the account. From the 6th year, partial withdrawal is possible. Fixed Returns In an average, the investments in PPF have invited 8% interest over the past. Also since the government decides the interest rate during every quarter, PPF assures fixed returns. Investment and Withdrawal The minimum and maximum investment you can make in a PPF investment account is Rs 500 and Rs 1.5 lakhs respectively. In case of serious ailments, premature closure is allowed. Partial withdrawals are permitted from the 6th year. ELSS Features High Returns Studying the history, we find that ELSS has always assured one of the highest returns among the tax-saving instruments. In the past, it has generated about 11-14% returns in a time frame of 3-years and 5-years. However, since the returns under ELSS are market-linked, they are not market guaranteed. Tax Benefits Section 80C allows tax benefits on ELSS investments up to Rs. 1.5 lakhs per year. However, while PPF is tax-free during all stages, the gains from ELSS scheme is taxable if it exceeds Rs. 1 lakh in a given year. Lock-in period Among the different tax-saving investment options, ELSS comes with the lowest lock-in period of only 3 years. Hence it carries a high degree of liquidity. SIP Option An investor can start investing in ELSS with an amount as low as Rs. 500 per month through <keyword id="6359303" type="DEFINITION" weightage="20" keywordseo="systematic-investment-plan">Systematic Investment Plan</keyword>. Whenever convenient, you can either start or stop the SIP. How to choose between PPF and ELSS PPF suits investors who do not want to take risks and can afford the lock in period of 15 years. Those investors who want to take only moderate risk and want to earn a higher interest can go for ELSS.

Comparison between PPF and ELSS, which is better?

We’re days away from the end of the financial year. There’s little time left to plan investments and save taxes. If you’ve clicked through to this article, it’s likely that you’ve fallen short on your tax-saving goals. 
 
You’re probably looking for a quick fix. You need to make an investment, save your taxes under Section 80 C, generate handsome returns—and you need to do all this without getting out of bed. 
 Worry not. Here’s an option for you: buy some <keyword id="103549" type="CITY" weightage="20" keywordseo="ELSS">ELSS</keyword> mutual funds. 
 
Introduction Equity Linked <keyword id="25450" type="UNKNOWN" weightage="20" keywordseo="savings">Savings</keyword> Schemes – ELSS – are diversified equity mutual funds. Your capital is invested in a variety of equity options in the stock market, allowing you to earn market-linked returns on your investments. 
 
Where To Buy 
Mutual funds can be bought from fund house branches, bank branches, agents, and distributors. Since you’re looking for a quick way out of your quagmire, you should go online. In this, you have two options: buy funds directly from the fund house website, or buy them from an online distributor. 
 
What To Buy 
There’s a plethora of ELSS mutual funds, and it’s not easy to decide which one to pick. Most fund houses offer at least one ELSS fund. There are plenty of mutual fund research and analysis websites that offer data on ELSS funds. You can access this data, look at parameters such as long-term returns, research rankings, management fees, investment objectives, etc. Ideally, you should consult experts before making this investment. 
 
How Much To Buy 
Like all mutual funds, ELSS funds can be bought as SIPs or lump sums. Since you’re looking to do a one-time investment to urgently save tax, you should be aware of your investment shortfall and invest up to that limit. You’re allowed to invest to save up to Rs. 1.5 lakh under Section 80 C through one or many of the investment options available, including ELSS funds. 
 
Risks 
ELSS funds are equity investments. Which means that your investment is subject to market risks and you should read all scheme documents carefully before investing. As markets rise and fall, so will your investment value. 
 
Returns 
That said, over the long term, ELSS funds have out-performed most small savings scheme such as PPF. As per the CRISIL - AMFI ELSS Fund Performance Index in December 2016, the ELSS fund category as a whole has generated annual returns of 3.35% in the last year, 16.64% in the preceding three years, 17.71% in five years, and 10.61% in 10 years. In case you find the markets tanking, stay calm, remain invested, and reap long-term, tax-free returns. 
 
Lock-In 
ELSS funds have a lock-in of three years. It means you cannot redeem units whose tenure has been less than three years. This has one significant benefit, which is… 
 
<keyword id="6383566" type="PERSON" weightage="20" keywordseo="Taxation">Taxation</keyword> 
Returns from ELSS funds are tax-free. ELSS funds are equity investments. Equity investments with a tenure longer than one year qualify as long-term investments, and therefore become exempt from capital gains tax. Since ELSS funds have a three-year lock-in, they are automatically tax-exempt. 
 
 
(The writer is CEO, BankBazaar.com)

Forgot to save taxes? Don’t panic. Here’s an investment option for you

<ul><li>The campaign talks about ETW Approach (E- Easy to invest, T - a taxing saving investment, W – helps in long term wealth creation).</li><li>It has been conceptualized and creatively led by Mirum India.</li></ul><keyword id="112970" type="General" weightage="20" keywordseo="axis-mutual-fund" source="Orion">Axis Mutual Fund</keyword>, one of the country’s leading <keyword id="6354820" type="General" weightage="20" keywordseo="mutual-fund" source="Orion">mutual fund</keyword> houses, unveiled its new campaign for the upcoming tax season called #ELSSHaiNa. The investor education campaign aims to reiterate the importance of investing in ELSS (Equity Linked Savings Schemes that offer tax benefits under section 80C of the Income Tax Act) as a preferred and hassle-free option to save on tax. One of the most crucial mistakes that most investors make is that they leave tax planning for the last minute. Towards the end of the year, people realise that they need to invest in the right financial instruments to save tax but aren’t able to choose the right one. One can often hear the phrase “Tax ka kya socha hai?” and conversations around it gain momentum as investors rush to understand how can they save tax or how much time is left to make the right investment or even what are the right instruments to invest in! Chandresh Nigam, MD &amp; CEO, Axis AMC said, “At Axis AMC, we have always upheld the importance of Responsible Investing. As money managers, it is our duty to not only educate investors about the significance of investing in quality assets over the long term but also help them grow wealth while saving on tax in an efficient manner. ELSS is an option that is known to all investors. But without having spent the adequate time to optimize the right tax planning solution, investors often make hasty decisions and miss out on the most logical and easy option.” The new campaign by Axis Mutual Fund builds on the insight that the tax season can be anxiety-inducing, only if you have not planned well in advance. Through a series of three films, #ELSSHaiNa aims to make investors realise that at any given point in their lives, investing in ELSS for tax saving should be a ‘no-brainer’ option. The films use humour as a tool to highlight how planning for tax via ELSS is simple and hassle free. In the first film, the protagonist is aware that he needs to plan for the tax saving season. He has taken the advice of several people around him but has still reached no desirable solution. <div type="Youtube" id="JwaLZz_U0QU" title="Tax savings ke liye sochna kya hai, #ELSSHaiNa!" thumbUrl="https://i.ytimg.com/vi/JwaLZz_U0QU/mqdefault.jpg"></div> In the second film, a newly married couple is can’t seem to decide on their honeymoon destination despite the multiple suggestions by their family members. <div type="Youtube" id="Qp9H3uQ-V-g" title="Iss tax season sochna kya hai, #ELSSHaiNa!" thumbUrl="https://i.ytimg.com/vi/Qp9H3uQ-V-g/mqdefault.jpg"></div> On the other hand, in the third film, the key character is confused over what to gift an extended cousin for their wedding. <div type="Youtube" id="XR8764psAN8" title="When it's about tax-saving, tab sochna kya hai, #ELSSHaiNa!" thumbUrl="https://i.ytimg.com/vi/XR8764psAN8/mqdefault.jpg"></div> All three films tie back to the proposition that all these aforementioned decisions seem worrying at best. But, when it comes to tax planning, “Sochna Kya Hai?”, because “#ELSSHaiNa”. Raghav Iyengar, Chief Business Officer, Axis AMC asserted, “Thanks to the continued efforts by MF industry, ELSS has started to gain widespread acceptance amongst the investor community. However, tax planning is still viewed as a strenuous and chaotic task. We need more awareness initiatives and campaigns such as ours, will be instrumental in connecting with the wider masses. The three distinct narratives of #ELSSHaiNa focus on capturing investment sentiment across age categories, genders, geographies. Furthermore, Axis Mutual Fund’s 360-degree approach for the campaign will leverage the power of digital, TV, radio, and the print medium to resonate and engage with the target audience.”

Axis Mutual Fund’s investor awareness campaign aims to reiterate the importance of investing in ELSS

Tax saving is something that all of us typically think about only in the last quarter of a financial year. As we enter January, we get an email from our company’s HR department to submit our tax-saving details for the year. This email makes us realise that we haven’t made any tax-saving investment yet. We rush to invest to save taxes and end up making hurried investment decisions. Sure, even this way, we do end up saving tax. But that shouldn’t be the sole purpose of tax-saving <keyword id="6362476" type="ORGANIZATION" weightage="20" keywordseo="investments">investments</keyword>. When planned and executed properly, tax-saving investments can help you build wealth over the long-term as well. By their nature, tax-saving investments are long-term and can be used for goals like child’s education or marriage and your own retirement. Under Section 80C, a taxpayer can invest up to Rs 1.5 lakh in a year to save tax. This is a decent amount to build a corpus of wealth as well. But these investments should not be done in the last few months with little time and after little thought. These investments should be planned and started in the beginning of the financial year itself. Here is how you can plan your tax-saving investments for FY2017-18 to make maximum gains. Figure out the tax-saving expenses that you can claim Under Section 80C, there are a number of expenses that qualify as tax-saving deductions. This includes the life insurance premium you pay, school tuition fees for two children, repayment of your home loan, etc. These are expenses that you make anyway and they should be used to save taxes. Figure out how much will be the amount of these expenses. This will help you understand how much of the Rs 1.5 lakh 80C limit you need to invest. Build a portfolio of tax-saving investments Once you know how much you will need to invest to fulfil the 80C limit, you should think about where you want to invest that money. There are a number of investment options available, like ELSS funds, PPF, NPS, SukanyaSamriddhi, fixed deposits, NSC, etc. Choose the kind of investment that you are comfortable with, which matches your risk profile and start investing in them right away. It is easier to invest a small amount every month through the year than a big amount in one go at the end of the year. Make good use of ELSS funds ELSS funds are equity <keyword id="6357979" type="ORGANIZATION" weightage="20" keywordseo="mutual-funds">mutual funds</keyword> that come with a lock-in period of 3 years. They are considered to be the best tax-saving investment because of the flexibility they come with and the ability to earn inflation-beating returns. Everyone should invest some amount of their 80C limit in these funds. The equity-related risks get mitigated over the long-term and the returns earned by these funds also become tax-free after a year. Ideally, the younger you are, the more you should invest in ELSS funds. Link investments to goals It is always good to have investment goals. With a target in mind, it would become easier for you to choose a tax-saving investment. For example, for a goal like retirement, you can rely on your investments in EPF or PFF. But for a goal that is just 5-7 years away, you can put money in tax-saving fixed deposits or ELSS funds. This way, investments with different lock-in periods can be used to achieve different short-term and long-term goals. Don’t invest and forget This is a mistake that many investors do, especially with ELSS funds. It is of no use to check a fund’s performance every single day, but you should at least once in 6 months or a year. You can stop your SIPs in an underperforming ELSS fund any time you want and start SIPs in another ELSS fund to avail the same tax benefit. This flexible nature of ELSS funds should be used to earn optimum returns. Think beyond 80C Tax-saving doesn’t end with Section 80C investments and expenses. There are other ways to save taxes that should also be utilized by taxpayers. Medical insurance is tax-deductible under Section 80G. An additional ₹50,000 can be invested in NPS under Section 80CCD. Taxes can also be saved by making certain donations under Section 80G. You should find out about these tax-saving deductions and avail as much benefit as you can. These are some things that the common taxpayer can do to get the most out of saving taxes this year. But the most important thing is to not procrastinate. Plan your investments and start early. (The article is authored by Archit Gupta, Founder &amp; CEO, ClearTax.com)

Here’s how you can plan your investments to gain maximum savings

The countdown to meet our financial goals has begun. <keyword id="25456" type="ORGANIZATION" weightage="20" keywordseo="financial-planning">Financial planning</keyword> is usually not our most well-thought-out decision as often our primary focus is saving tax. And, though it should play a key role, just saving tax is not necessarily the best way to go about it. The constant need to save tax instead of planning finances methodically, often leads to lack of liquid funds in times of need. It is, therefore, critical that you strike a balance between your long-term and short-term goals. 
 
This new year, make your savings work double time: save tax and get best possible returns. Here, are a few financial instruments in which you can park your money for long-term investment and ensure quick access to funds, if required. 
 
1. <keyword id="114852" type="ORGANIZATION" weightage="20" keywordseo="Public-Provident-Fund">Public Provident Fund</keyword> (PPF): PPFs top every investor’s list, and they should. The Budget 2014-15 made this scheme even more attractive by increasing the annual investment limit to Rs 1.5 lakhs. This scheme is a safe investment option for all, whether salaried or self-employed. The downside, however, is that it is a long-term saving with a lock-in period of 15 years. Further, you can withdraw money from the fund from the 7th year onward and that too only 50% of the balance. 
 
2. National Savings Certificate (NSC): Post offices issue NSCs as a small savings scheme. You can invest in either 5-year or 10-year NSCs. One great advantage offered by NSCs is that there is no upper limit to the amount you want to invest, though tax benefits will be available on an amount of Rs 1.5 lakh or lower only. 
 
3. Unit-linked <keyword id="35450" type="COMPANY" weightage="20" keywordseo="insurance">Insurance</keyword> Plan (ULIP): It is a long-term savings scheme that doesn’t offer much flexibility or decision-making to the investor. You invest for a period of 10-12 years, with a lock-in period of 5 years. Although <keyword id="6362086" type="CITY" weightage="20" keywordseo="Ulips">ULIPs</keyword> allow you to switch between equity and debt, your profits depend on the financial expertise of your fund planner. On the upside, ULIPs provide the investor with a life cover. 
 
4. Equity-linked Savings Scheme (ELSS): It is flexible with respect to investment duration, with a lock-in period of three years. There is no maximum limit to the amount you can invest in an ELSS, and investment of up to Rs 1.5 lakhs offers tax benefits. One of the many benefits of an ELSS is that no tax is levied on withdrawing your investment after the lock-in period. 
 
5. National <keyword id="6354432" type="UNKNOWN" weightage="20" keywordseo="pension">Pension</keyword> Scheme (NPS): NPS is the cheapest market-linked retirement option as the annual fund management charges are a maximum of 0.25% of the amount invested. Your minimum investment criterion will vary according to the tier you are grouped in. You can invest in any one of the three types of NPS funds and divide your corpus according to your risk-taking ability. 
 
6. Post Office Time Deposit (POTD) scheme: It is primarily a small saving scheme, with the duration ranging from 1 year to 5 years. You can earn an interest of about 8.50%, depending upon your investment period. Though the interest is paid annually, it is compounded quarterly. Further, you can now exit the scheme after 6 months, which makes it a handy investment option. 
 
7. Banks’ Fixed Deposits (FDs): Banks offer 5-year FDs that serve the dual purpose of saving tax and investing money safely. You can invest a minimum of Rs 100 and a maximum of Rs 1.5 lakhs. Banks offer interest rate of 8%-9.75%, depending on the bank you choose. However, the interest earned on the fixed deposits is fully taxable. 
Plan now and save for that rainy day. 
 
 
 
(About the author: The article has been written by By Naveen Kukreja, Director, Paisabazaar.com) 
 
Image: Thinkstock

Your DIY For Optimizing Tax Savings and Financial Liquidity

<div class="KonaFilter image-container float_right"><div class="image on-image"><a href="http://www.flickr.com/photos/angryjuliemonday/7645300244/">Flickr/AngryJulieMonday</a></div></div><keyword id="319716" type="COMPANY" weightage="60" keywordseo="Chipotle">Chipotle</keyword> shares were up nearly 15% in Friday trading.
CEO Steve Elss <a href="http://www.businessinsider.com/chipotle-is-about-to-get-more-expensive-2013-10">said in his earnings call Thursday</a> the company plans to raise prices between 3% and 5% as it eliminates genetically modified organisms from its menu.
They <a href="http://www.businessinsider.com/chipotle-q3-earnings-2013-10">also had a nice beat on Q3 revenues</a>, and saw net income rise more than 15%.
And they forecast that nearly 200 new restaurants could open next year, up from a max of 180 this year.
David Einhorn is not going to be thrilled.
The Greenlight Capital chief <a href="http://www.valuewalk.com/2013/10/david-einhorn-gmcr-short/">devoted a huge chunk of his latest note</a> to investors explaining why he thinks Chipotle is a good short. 
<a href="http://www.businessinsider.com/goldman-chipotles-it-factor-fading-2013-10">And a note from Goldman earlier this week</a> saying the company was losing its "It factor."
For now, defiance.

Chipotle Shares Are Going Bonkers

March is not called the craziest month of the year for nothing; after all those tax-saving and tax-filing processes, tax-payers finally breathe a sigh of relief as it gets over. However, soon into the new financial year, investors and taxpayers should look forward to completing a few pending tasks, which don't take too much time or effort, but help a lot in making your finances controlled. 
 
Here are six ways in which you can plan your next financial year. 
 
Don’t Wait For Yearend To Start <keyword id="136807" type="ORGANIZATION" weightage="100" keywordseo="tax-planning">Tax Planning</keyword> 
Even though the tax-planning season has just ended, this is still the best time to start tax planning, say experts. Investing in equity-linked saving schemes (ELSS) is best done when SIPs are started in April itself. 
As per an ET research, investors who took the SIP route earned more than those who waited till March to invest in ELSS schemes. When your investments are spread across 12 months, you get a cushion against volatility, and it also lightens the burden at the end of the FY. 
 
Get Your Tax Papers Ready 
start collecting whatever documents and information you need for tax filing from the beginning itself, to save yourself the collective efforts at the time of filing. Foreign assets or foreign income earned during the year calls for the collection of these documents right away, as obtaining tax credit receipts, income certificates and other documents from foreign countries might take time and should not be kept for later. 
Organise Investment Portfolio 
Make a detailed portfolio of all your asset allocations and investments. For this you can start using a portfolio tracker via Value Research, by uploading the consolidated mutual fund statement and NPS details, which would incorporate all transactions into the portfolio. 
 
Raise Quantum Of Investments 
As the appraisals are just around the corner, your investments need to be increased in the same proportion. Out of these, some investments like Employee Provident Fund contribution would automatically increase, while for others, you can either increase the existing SIP amount or start fresh SIPs in other funds. 
 
Ask your employers for VPFs 
Small savings schemes have smaller interest rate, which could further fall. However, the interest earned on EPF might not be affected much, which is why you can go for VPF contribution instead of PPF. These are eligible for tax deduction under Sec 80C and are tax free on withdrawal. 
 
Avoid TDS by submitting forms 15G &amp; 15H 
To avoid TDS on interest, this is the right time to file forms 15G or 15H. While form 15G can be filed by investors below 60 years of age having total income from interest less than the basic exemption of Rs 2.5 lakh and don’t have any tax liability, form 15H is for individuals above 60 who don’t have to pay any tax on total income. 
 
<a href="http://intraweb.stockton.edu/eyos/hshs/content/images/2013%20Pics/finance.jpg">Image source</a>

Here’s how you can make the best out of this financial year

Tax saving is a tricky subject and needs a lot of planning. By learning the intricacies in the taxation laws and studying your own situation in relation to the taxation laws will enable you save on your taxes. Here are some easy ways for the salaried employees to save on income taxes. Understand your salary slip first You must understand your salary slip well to know the ways to save on the gross tax you are liable to pay. The salary slip consists of three segments namely earnings, allowances and deductions. These sections will give enough clues on how to save on your taxes. The basic pay reflects on your earnings. Towards contributions, you might receive conveyance allowance, leave travel allowance, dearness allowance, house rent allowance and others. This section will also include deductions including income tax, professional tax and provident fund. Here are a few useful tips to plan for your taxes efficiently. How to save on taxes Income tax is levied on basic pay. Your House Rent Allowance (HRA) is tax exempted if you live in a rented house and pay the monthly rent. A fixed amount received as conveyance allowance also qualifies for tax exemption. Some employers might deduct income tax at the source. In such cases, the taxes paid already can be claimed by producing the necessary supporting documents at the end of the financial year. Also explore some options for investing in tax saving instruments. Understand Section 80C If you can understand the 80C section of the Income Tax Act thoroughly, you can hope to save on taxes and take home more salary. You are allowed to invest till an upper limit in schemes like National Savings Certificate (NSC), Equity Linked Savings Scheme (ELSS), Public Provident Fund (PPF) Bank Fixed Deposit (FD) and many other products. Do not plan for the taxes during the last minute If you will only study the tax during the last minute, it will give you very less room to save. If this happens, you will be overburdened with a need to make a sizeable investment in one time during the last minute. Small regular investments in Mutual Funds and SIPs over the entire year can help you make significant saving on taxes. Meet your financial goals through investments Investments planned in the right way not only enable you save on taxes, they also help you meet some of your cherished goals in life. It is possible to convert all your tax saving investments into ones that will bring you higher returns. For example, if you wish to buy a car, invest regularly in any ELSS. The lock in period will end in three years and after that you can withdraw this amount. Hence many tax saving instruments can help you meet your financial goals easily and effectively. Other ways to save on taxes It is possible to claim tax benefit on LTA once in every two years. To do this, you must submit the proof of travelling. Section 80D contains provisions for you to avail of tax benefits for the premiums paid towards health insurance policies. Section 80E contains provisions for tax exemptions on interest paid towards education loans.

You Searched For "ELSS" and got 9 results

Looking to save tax? Give an ELSS fund a chance – For tax savings & wealth creation

Adhil Shetty

Comparison between PPF and ELSS, which is better?

BI India Bureau

Forgot to save taxes? Don’t panic. Here’s an investment option for you

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Axis Mutual Fund’s investor awareness campaign aims to reiterate the importance of investing in ELSS

BI India Partner

Here’s how you can plan your investments to gain maximum savings

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Your DIY For Optimizing Tax Savings and Financial Liquidity

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Chipotle Shares Are Going Bonkers

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Here’s how you can make the best out of this financial year

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BI India Bureau

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