You are aware that from FY 2014-15, investment limit under u/s 80(C) has been increased to Rs. 1,50,000 (earlier limit was Rs. 1,00,000). Investment u/s 80(C) can be shown as deduction from your income for Income Tax calculations. If you invest Rs. 1,50,000/- u/s 80(C) and if you fall in 20% Tax bracket then you can save Rs. 30,000 in Taxes (20% of Rs. 1,50,000).
Options for 80(C) investments: LIC, PPF, NSC, ELSS
In my earlier blog, I have explained how ELSS (Equity Linked Saving Schemes a.k.a Tax Saving Mutual Funds) have generated superior returns over the years compared to other products.
I have been investing in ICICI prudential Tax Plan (an ELSS) since June-2012 through SIP (Systematic Investment Plan) route and I have saved Taxes worth Rs. 90000 till date and my investment in the scheme has grown @ 33% p.a till date. ELSS provides dual benefits of Tax saving + phenomenal returns on your investment.
Any queries on Tax saving investments or if any assistance is required w.r.t your investments, please post in comments…..I would be happy to help