Financial Year 2015-15 : Investment for Income Tax Savings -3 Best Financial Products..!

Financial Year 2015-15: 
Investment for Savings (80C Basket up to Rs.1.5 lac) that any one should consider.

Employees’ Provident Fund (EPF)..!

For a salaried individual, the entry in the world of section 80C investment products begins with EPF.

Every month, you and your employer contribute 12% of any one's salary in the EPF account.

The 12 % that you contribute qualifies for a tax deduction under 80C up to Rs.1.5 lakh a year.

EPF for now is returning 8.75% per annum. This is one the best products for a tax-free, risk-free return.

And with the unique account number (UAN), which makes portability possible in EPF, this should be looked as a serious retirement vehicle.


Public Provident Fund (PPF)..!

The returns on PPF have become market-linked and are pegged to government securities. 

The rate is declared right before the start of a financial year.

For this fiscal, the rate is 8.7%. To help you exhaust your 80C deduction limit of up to Rs.1.5 lakh, the Union budget last year also increased the maximum amount of investment in PPF from Rs.1 lakh to Rs.1.5 lakh.
Given the favourable tax treatment, PPF remains an attractive proposition for long-term savings, but keep your goals and asset allocation in mind. PPF and EPF both form a part of your debt portfolio.

Equity-linked savings scheme (ELSS)..!
If you are planning for the long term and can stomach short-term volatility that stock markets bring, equity investments are a must. 

You can either invest a lump sum or  / through systematic investment plans (SIPs).
ELSS comes with a lock-in of  three (3) years making it a short-term vehicle from the liquidity standpoint, but it is advisable to stay invested in equities for long.

From livemint
Share:

No comments:

Post a Comment

Popular Posts

Blog Archive

Recent Posts

Featured Post

Coverton Insurance Broking - a one-stop solution for businesses and individuals seeking expert risk management

Coverton Insurance Broking Launches Comprehensive Insurance Broking Services to Simplify and Enhance Risk Management for Businesses and In...