So, here we are again at that time of the year when Investments, tax saving, tax returns become the paramount problems of our lives. Most of the companies would have by now issued deadlines for submitting proof of Investments done for tax saving purposes to their employees. Sadly, very few of us plan our tax savings the way we plan our property or other decisions. The focus is usually on saving tax rather than generating any incomes out of them. A little time and thought spent on these investments can actually become good income generators for a secured future.
Let's take a look at the numerous possibilities open to us for saving taxes as well enjoying the benefits of their future returns...
The rescuer Section 80 C
None of us like paying taxes. After all it's your hard earned money. But, what if you could actually use this money to create wealth for you in future... Sounds interesting? Read on...
Section 80C of the Indian Income Tax Act, specifies certain investments and contributions which are eligible for deduction from your Gross Total Income, which further leads to a reduction in your Tax Liability.
However, how and where the investment should be made will depend upon certain factors like your risk quotient/profile, age and the amount available to invest at your disposal. The money that you invest in these products is deductible up to a maximum limit of Rs 1 lakh. This is irrespective of how much you earn and under which tax bracket you fall.