Save tax = Save money, invest wisely

Dear Investor,

It is that time of the year, when you must be wanting to make investments, in-order to save your tax.

And, why not, after all it is your hard earned money, and, money saved = money earned.

So, I believe, the foll. details will help, firstly check out the current tax slabs :
Income Tax rates or Tax Slabs 10-11 :

Income Tax Slabs 2010/2011 for Men

Income: upto 1.6 lacs	no income tax
Income : 1.6 lacs to 5 lacs	10 %
Income : 5 lacs to 8 lacs	20 %
Income : above 8 lacs	30 %

Income Tax Rates 2010/2011 or Women

Income : upto 1.9 lacs	NO TAX
Income : 1.9 lacs to 5 lacs	10 %
Income : 5 lacs to 8 lacs	20 %
Income : above 8 lacs	30 %

Income Tax rates 2010/2011 for Senior Citizen

Income : upto 2.4 lacs	NO TAX
Income : 2.4 lacs to 5 lacs	10 %
Income : 5 lacs to 8 lacs	20 %
Income : above 8 lacs	30 %

Now, after knowing your tax slabs, here are some good options under section 80/c, which will help you to save tax.

You can invest in :

LIC POLICIES                      - life insurance cum tax saver
PPF                                     - tax free interest
TAX FREE MUTUAL FUNDS - stock market linked returns
ELSS                                   - stock market linked returns
* max. limit for section 80/c is 1 lakh.

For more details on tax planning, reply back, you may mention your income, current investments, and we can plan your investments, to get better returns and also save on tax.

Additional Rs. 20,000, can be invested in infra. bonds.

Mediclaim premium also falls under Section 80D, allows you to invest in a health insurance plan to avail a deduction up to Rs. 15,000.

Foll. are some more details :

Ready reckoner on various sections of Income tax under which different investments can be claimed for Tax exemption :

• Sec 80C / 80CC : Investment up to Rs 1Lac in NSC, 5 Yrs tax saving bonds, EPF , PPF, ELSS, LIC, ULIP premium, pension, annuity plan, Registration fee for Purchase of House, Principal repayment of Home Loan, 5 -Yrs post office time deposit, Children’s tuition Fees are exempted under this section.

• Sec 24 : Maximum amount can be claimed is 1.5 Lacs under this section and in case of joint ownership the limit is caped till 3 Lacs

• Sec 80D : A maximum limit of 15K under mediclaim or health insurance offered by Life insurance Cos. An additional limit 15K is covered for coverage of dependent parents. For senior citizen limit is upto 20K.

• Sec 80DD: The maximum amount is 50K to 100K for treating maintenance of a dependent family member with severe disability.

• Sec 80E : Tax relief is on Interest payment on educational loan for higher studies of self, spouse or children.

• Sec 80G: 50% or 100% of Donation amount to Charitable institutions is exempted up to a overall celling of 10% of your gross total income.

I hope this must have given you some basic information on tax planning / saving.
If you need to contact me, I am available on :

Gtlak chat    nihalmohandas@gmail.com ( online chat )
Mobile nos.  9702011099 / 9987059192
Emai add.    nihal155@yahoo.com

Thanks.


Regards,



Nihal Mohandas

Investment Consultant

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