The assessment Year 2019-20 is here the "Best Tax Saving Investments". Sadly there is no straight response to this. The best speculation is diverse for various individuals and is lined up with their arrival desires, chance-taking capacity, individual conditions, and arrangement with their monetary objectives in addition to other things.
Deduction of Section 80C
You can guarantee the greatest reasoning of Rs 1.5 Lakhs u/s 80C (counting Sections 80CCC, 80CCD) by putting resources into qualified instruments. Lamentably speculations and uses permitted u/s 80C is excessively packed and that settles on the decision troublesome for the vast majority.
The following is the rundown of ventures/costs qualified for reasoning u/s 80C:
Download Automated Income Tax Form 16 Part B for F.Y. 2018-19 [ This Excel Utility can prepare at a time 100 Employees Form 16 Part B ]
The post underneath proposes the way to deal with select the speculations for duty arranging.
Uses Eligible for Tax Benefit:
The initial step is to check all uses which are qualified for assessment reasoning. The following is the rundown:
1. Educational cost Fees for up to 2 youngsters
The costs on educational cost expenses for full-time courses for the limit of two kids is qualified for reasoning u/s 80C. Be that as it may, the finding isn't accessible for educational cost expense to training classes or private educational costs. The accompanying costs are not considered as educational cost expenses – Development Fee, Transport charges, in charges, Mess charges, library charges, Late fines, and so forth.
2. Stamp Duty for the enlistment of New Home
Stamp obligation and enlistment energizes to Rs 1.5 Lakh can be guaranteed for conclusion u/s 80C. The installment ought to have been made in the equivalent money related year for which the assessment is being paid. for example, the derivation can't be conveyed forward to one year from now. Additionally, the house ought to be for the sake of assessee guaranteeing to reason.
Additionally Read: How developers utilize excessively developed region to beguile home purchasers?
On the off chance that you have paid stamp obligation for a new home, you most presumably would debilitate your 80C utmost for the year and no further venture may be required.
Mandatory Deductions:
There are some mandatory derivations that are qualified for tax cut u/s 80C. Check in the event that you contribute in any of such derivations:
1. Provident Funds (EPF/VPF)
EPF is a mandatory conclusion for most salaried workers. The finding can be 12% of the essential pay and dearness remittance or Rs 1,800 consistently. Take a gander at your pay articulation to realize what amount have you contributed for the year. Check just your commitment. Business' commitment isn't qualified for duty sparing venture. You can likewise have some sum contributed through Voluntary Provident Fund (VPF), which can be up to 100% of the fundamental compensation and DA.
Download Automated Income Tax Form 16 Part A&B for the Financial Year 2018-19 [ This Excel Utility can prepare at a time 100 Employees Form 16 Part A&B ]
2. National Pension Scheme (NPS)
NPS (Tier 1) is obligatory for most Government workers who joined after 2004. Take a gander at your compensation slip to check your conclusion. Again just your commitment is a substantial derivation. Boss' commitment isn't qualified. The beneficial thing is you can utilize this commitment to guarantee extra expense conclusion up to Rs 50,000 under the recently presented Section 80CCD(1B).
Repeating Deductions:
There are a few conclusions which happen year on year like home advance reimbursement, protection premium and so on.
1. Home Loan Principal Amount
Is it accurate to say that you are paying home credit? The essential segment paid each year is qualified as assessment reasoning. For this, you can download the duty proclamation from banks' site. In the event that not get it from the advance supplier. This would give you a gauge of foremost and intrigue paid for the budgetary year.
2. Protection Premium
Have you purchased disaster protection items like ULIP, Endowment Plan or Term Insurance where you have to pay the premium for consequent years? On the off chance that you need to keep putting resources into a similar, you can keep on guaranteeing tax cut.
3. PPF (open Provident Fund)
On the off chance that you have PPF account, you ought to contribute least Rs 500 out of a monetary year. On the off chance that you don't do, a fine is demanded.
4. Sukanya Samriddhi Account (SSA)
Least store of Rs 1,000 should be made each year else punishment of Rs 50 is demanded.
5. NPS
Do you have an NPS account? A base commitment of Rs 1,000 is required each budgetary year to keep the record dynamic.
For some individuals, the 80C derivation limit is come to at this point. In the event that not, look over the rundown beneath relying upon your hazard profile and speculation objectives:
New Investment for 80C:
1. Term Life Insurance
Do you have wards? Would they endure monetarily on the off chance that something transpires? Do you have enough extra security? In the event that The assessment Year 2019-20 is here the "Best Tax Saving Investments". Sadly there is no straight response to this. The best speculation is diverse for various individuals and is lined up with their arrival desires, chance-taking capacity, individual conditions, and arrangement with their monetary objectives in addition to other things.
You can guarantee the greatest reasoning of Rs 1.5 Lakhs u/s 80C (counting Sections 80CCC, 80CCD) by putting resources into qualified instruments. Lamentably speculations and uses permitted u/s 80C is excessively packed and that settles on the decision troublesome for the vast majority.
The post underneath proposes the way to deal with select the speculations for duty arranging.
The initial step is to check all uses which are qualified for assessment reasoning. The following is the rundown:
The costs on educational cost expenses for full-time courses for a limit of two kids are qualified for reasoning u/s 80C. Be that as it may, the finding isn't accessible for educational cost expense to training classes or private educational costs. The accompanying costs are not considered as educational cost expenses – Development Fee, Transport charges, in charges, Mess charges, library charges, Late fines, and so forth.
Stamp obligation and enlistment energizes to Rs 1.5 Lakh can be guaranteed for conclusion u/s 80C. The installment ought to have been made in the equivalent money related year for which the assessment is being paid. for example, the derivation can't be conveyed forward to one year from now. Additionally, the house ought to be for the sake of assessee guaranteeing to reason.
Additionally Read: How developers utilize excessively developed region to beguile home purchasers?
On the off chance that you have paid stamp obligation for a new home, you most presumably would debilitate your 80C utmost for the year and no further venture may be required.
There are some mandatory derivations that are qualified for tax cut u/s 80C. Check in the event that you contribute in any of such derivations:
EPF is a mandatory conclusion for most salaried workers. The finding can be 12% of the essential pay and dearness remittance or Rs 1,800 consistently. Take a gander at your pay articulation to realize what amount have you contributed for the year. Check just your commitment. Business' commitment isn't qualified for duty sparing venture. You can likewise have some sum contributed through Voluntary Provident Fund (VPF), which can be up to 100% of the fundamental compensation and DA.
NPS (Tier 1) is obligatory for most Government workers who joined after 2004. Take a gander at your compensation slip to check your conclusion. Again just your commitment is a substantial derivation. Boss' commitment isn't qualified.
There are a few conclusions which happen year on year like home advance reimbursement, protection premium and so on.
Is it accurate to say that you are paying home credit? The essential segment paid each year is qualified as assessment reasoning. For this, you can download the duty proclamation from banks' site. In the event that not get it from the advance supplier. This would give you a gauge of foremost and intrigue paid for the budgetary year.
Have you purchased disaster protection items like ULIP, Endowment Plan or Term Insurance where you have to pay the premium for consequent years? On the off chance that you need to keep putting resources into a similar, you can keep on guaranteeing tax cut.
On the off chance that you have PPF account, you ought to contribute least Rs 500 out of a monetary year. On the off chance that you don't do, a fine is demanded.
Least store of Rs 1,000 should be made each year else punishment of Rs 50 is demanded.
Do you have an NPS account? A base commitment of Rs 1,000 is required each budgetary year to keep the record dynamic.
For some individuals, the 80C derivation limit is come to at this point. In the event that not, look over the rundown beneath relying upon your hazard profile and speculation objectives:
Do you have wards? Would they endure monetarily on the off chance that something transpires? Do you have enough extra security? In the go get term protection
first. It's essential to settle on security first.
no, go get term protection first. It's essential to settle on security first.
Valuable Tips:
Online term plans are a lot less expensive than disconnected. So it bodes well to go for online plans.
Do not give false data in the protection structure. The protection guarantee can be rejected for wrong data.
Do not purchase something besides Term Plans from insurance agencies. No cash back, blessing plans!
Download Automated Income Tax Form 16 Part B for F.Y. 2018-19 [ This Excel Utility can prepare at a time 100 Employees Form 16 Part B ]
2. ELSS (Equity Linked Saving Scheme)
Prominently known as Tax sparing Mutual Fund. These are value-based common assets and a standout amongst the best speculation alternatives to make riches over the long haul while sparing expense. On the off chance that you can process the instability of financial exchange, this is the prescribed alternative.
Lock-in Period: 3 Years
The Good:
Among the duty sparing ventures, ELSS has least lock-in time of 3 years.
The gains on ELSS Fund is Tax-Free.
Convenient to purchase and oversee as ELSS can be purchased and recovered on the web.
The Bad:
There can be extensive instability in returns and you can get negative returns toward the finish of 3 years.
Download Automated Income Tax Form 16 Part B for F.Y. 2018-19 [ This Excel Utility can prepare at a time 50 Employees Form 16 Part B for F.Y. 2018-19 ]
Supportive Tips:
Invest through SIP (Systematic Investment Plan). This aide in holding over instability to some degree.
Choose "Development" choice over "Profit Payout" as this makes riches over the long haul.
Try to contribute straightforwardly to finance as this would give you 0.5% to 1% higher returns when contrasted with when you contribute through a representative
If doing a singular amount check for financial exchange valuations. On the off chance that you contribute at high valuations, you may see low or negative returns toward the finish of 3 years.
Avoid "shut finished" ELSS NFOs which are propelled during this time.
3. PPF (Public Provident Fund)
PPF is another famous assessment sparing venture choice for 80C, particularly for individuals with no other provident reserve.
Lock-in Period: 15 Years. Anyway, fractional withdrawal is permitted from the seventh year
The Good:
The premium earned on PPF is Tax-Free
After opening the PPF account, venture should be possible online consistently (for certain banks)
Highest Safety – sponsored by Govt. of India
The Bad:
The lock-in is for a long time however there is incomplete liquidity from a seventh year onwards.
Download Automated Income Tax Form 16 Part A&B and Part B (One by One Preparation ) Excel Based Software for F.Y. 2018-19
Accommodating Tips:
Investment done till fifth of the month gains enthusiasm for the month. So store your cash before the fifth of the month
You can utilize a mix of PPF and ELSS for expense sparing speculations. On the off chance that you discover securities exchange over-esteemed, PPF is a great choice.
4. Senior Citizen's Saving Scheme (SCSS)
SCSS is a great choice for senior residents (over 60 years old) as it gives normal quarterly premium pay straightforwardly in financial balance.
Lock-in: 5 years
The Good
Highest Safety – supported by Govt. of India
The loan cost offered is most noteworthy among the little sparing plans
The Bad:
The intrigue got is assessable.
TDS would be deducted if the all-out enthusiasm for a year is over Rs 10,000. Be that as it may if qualified Form 15H can be submitted to evade TDS.
Accommodating Tips:
SCSS record can be shut following 1 Year (with punishment) yet in the event that you have profited Sec 80C advantage, it would be turned around.
The shared service can be opened just with your life partner. There is no age limit relevant for the shared service holder.
5. Sukanya Samriddhi Account (SSA)
SSA can be opened by guardians of young lady kid subject to specific conditions. SSA can be a decent alternative for fixed pay venture for the tyke. Anyway,y you ought to likewise put resources into ELSS or other value shared assets for objectives identified with the kid.
Lock-in: Deposit to the record to be made for a long time and record develops at 21 years from the date of opening
The Good:
The premium earned on SSA is Tax Free and furthermore higher than that offered to PPF
50% withdrawal permitted when a young lady turns 18 for marriage/advanced education
Highest Safety – sponsored by Govt. of India
The Bad:
No arrangement of Loan or pre-develop withdrawal not at all like PPF
Supportive Tips:
Minimum store of Rs 1,000 should be made each year else punishment of Rs 50 is required
The account can be shut before 21 years if there should arise an occurrence of marriage
6. National Saving Certificate (NSC)
NSC can be purchased at most workplaces to spare duty u/s 80c. It is accessible for a long time (NSC VIII) as it were. The intrigue offered is 7.8%.
Lock-in: 5 Years
The Good:
The premium is higher than most duty sparing bank fixed stores.
Certificates can be kept as insurance security to get advance from banks
No Tax derivation at a source