Tax Saving Schemes for Employees-Instant Guide for A.Y. 2015-2016
• Option to continue after maturity for every 5 years.
• Investment: Mm. 500; Max. 1.5 lac p.a.
• Can withdraw 50% of the balance from 7th year onwards.
• An amount equal to withdrawal can be invested from current year’s income to make the account a self sustaining one.
• Loan upto 25% of balance available (2 years ago) is allowed upto the end of 5th year.
• Second loan is given after clearing the first loan.
• No loan is given after 6 years from the date of first subscription.
• After 15 years entire balance can be withdrawn.
• Interest earned is totally exempt u/s 10(11).
• Tax Exemption. lnvest uptoRs.1,50,000 qualifies for deduction u/s 80C.
• A term Deposit to be opened with a scheduled Bank in the prescribed form.
• Mi Investment Rs. 100/-Max. 1 Lakh.
• The Term will be 5 Years.
• Premature encashment not permitted.
• Income-tax benefit amount of term deposit invested along with PPF/LIC/ NSC/ULIP, etc upto a max. of Rs.1.5 Lakh eligible for deduction u/s 80C.
• interest earned on the deposit is taxable.
• Variety of Plans available.
• Major Benefit: Life Risk Cover.
• Encourages to save compulsorily.
• Besides covering life risk, gets tax benefit both at entry (premiums paid) exit point (Maturity + Bonus).
• Asset is created without having one.
• Tax Exemption: Eligible u/s 80C for overall Investment upto Rs.1.5 lakh maturity amount (Investment + Bonus) is totally exempt u/s 10(100). For policies taken on or after 1.4.2003, prem. exceeding 20% of the S. A. policies taken on or after 1.4.2012 prem. exceeding 10% of the S.A. in any year, will not enjoy tax free returns uls 10 (10 D) or benefit u/s 80C.
LIC’S JEEVAN AKSHAY VI
• Immediate Pension Plan for individual between 30 85 years.
• Mi Investment: Rs. 1,00,000.
• e.g. Investment of Rs. 10 lakh forage at entry 40 will give monthly pension of Rs. 5892.
• Tax Exemption : Eligible for exemption uls BOC for overall Investment upto Rs. 1.5 lakh.
• Any individual between 18 70 years can take a policy.
• Investment: Mm. Premium – Rs. 2,500 p.a.; Rs. 10,000 for Single Premium; Max. – No Limit.
• Minimum pension starting age is 50 years maximum is 79 years.
• Guaranteed Pension either for 5,10,15, 20 years or for life time.
• Option to commute 25% of Pension.
• Tax Exemption : Premium paid upto Rs. 1.5 Lakh pa. either under Single Premium or regular Policy is totally exempt u/s 8OCCC (Under 80C)
EQUITY LINKED SAVINGS SCHEME (ELSS)
• Most favourite investment
• Open ended. Lock-in 3 period years.
• Many of the Funds have given excellent returns during recent past. Max. tax benefit plus max. returns.
• Tax Exemption/Benefit: Eligible for exemption u/s 80C for overall Investment upto Rs. 1.5 Iakh.
• Dividend earned is exempt u/s 10(33).
NATIONAL SAVINGS CERTIFICATES
• Can buy Single / Jointly.
• Duration 6 years / 10 years.
• Inrerest rate is 8.5% p.a. for 5 years. 8.8% for 10 years.
• Interest accrued between 1st. 5th. year is deemed to have been reinvested.
• Investment deemed reinvestement upto Rs. 1,50,000 is eligible U/s 80C.
NATIONAL SAVINGS SCHEMES ELIGIBLE U/S 80C
Aggregate Tax Exemption Limit U/s 80C
Bank Depsoit-Tax Saving
Equity Linked ( ELSS) Fund Scheme
Nationa Saving Certificate (NSC)
Post Time Depsot Account ( 5 Yrs.)
Public Provedent Fund (PPF)
Unit Linked Insurance Plan ( ULIPs)
Prem. paid on Life Insurance Policies including Pension Plan
Senior Citizen Saving Scheme
Sec. 143(3). Scrutiny Assessments by Income Tax Department
Surveys for Enforcing Compliance with Provisions of TDS
“Summon” U/s 131 of Income Tax Act.
Investigation by Income Tax Department:
Appellate Authorities of Income Tax Department
Power to Call for Information U/s Sec. 133(6) of Income Tax Act.
Specific Surveys U/s 133A(1) of Income Tax Act.
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