Income Tax saving idea : ELSS Mutual funds & ULIPS

Under Income tax Act section 80(C), you can reduce your taxable income by Rs 1,00,000. Investments in ELSS mutual funds & ULIP plans come under section 80(C).

ELSS mutual funds: ELSS stands for Equity linked saving schemes. These are equity oriented mutual funds. 3 years lock-in period is applicable for all ELSS schemes. That means, once you invest in these schemes, you should not redeem your units till the end of lock-in period. But you can receive the dividends on your invested amount which are taxable. Read more

February 1, 2009 | Filed Under Income Tax | Leave a Comment

Save Income tax with Life Insurance & Medical insurance premiums

Life Insurance is one of the tax saving instruments under section 80(C). You can avail tax benefit up to a maximum amount of Rs 1,00,000 in a financial year under section 80C. If you are paying an insurance premium for you or your spouse it can be exempted from tax. The redemption amount at the end of maturity is also not taxable for Life Insurance. Read more

February 1, 2009 | Filed Under Income Tax | Leave a Comment

Save Income tax with Home loan

Taking home loan is one of the good ideas for saving income tax. There are many reasons for this.

Home loan can reduce the taxable income by Rs 2,50,000 per financial year. This much amount is not possible with any other tax saving plans. Apart from tax benefits it could yield huge capital gains in the form of ‘land value appreciation’.

Home loan principal and interest on principal paid during a financial year can be exempted from tax. You can save Income tax on home loans under two different sections of Indian Income Tax. Read more

February 1, 2009 | Filed Under Income Tax | 3 Comments

Income Tax info & Calculator 2008 - 2009

Below given are the different tax slabs information. Please check which category you fall into.

Your income - Tax liability(%)

General:

Rs 0 - 1,50,000                          -   Nill
Rs. 1,50,001 – Rs. 3,00,000     -   10%
Rs. 3,00,001 – Rs. 5,00,000           -   20%
Rs. 5,00,001 – Rs. 10,00,000        -    30%

Women:

Rs 0 - 1,80,000      -   Nill
Rs. 1,80,001 – Rs. 3,00,000      -    10%
Rs. 3,00,001 – Rs. 5,00,000        -    20%
Rs. 5,00,001 – Rs. 10,00,000      - 30% Read more