Income Tax Benefits on Investments

[abhishreshthaa]

Tax planning can be done on the basis of showing investments in the balance sheet in order to evade paying high tax. Many Salaried employees don’t know how to evade tax? This problem arises when the individual dint have the idea of benefits arising out of long term investments. The following are the major income tax benefits available on certain investments.

They are as follows:


 Premia paid on life insurance policies.

 Provident fund contributions.

 10-15 years deposits under post office savings bank

 Nationals savings certificates

 Unit linked insurance plan of LIC mutual fund

 Subscriptions of home loan account scheme or a notified pension fund of the national housing bank.

 Contributions to personal funds by ba mutual fund or by the national housing bank.

 Contributions to national savings scheme.

 Contributions to equity linked savings scheme of a mutual fund/UTI upto a maximum of Rs. 100000

 Contribution by an individual towards an approved superannuation fund.

 Amount invested in equity shares, debentures of a public company engaged in infrastructure including power sector.

 Education expenses up to Rs.12000 per child eligible for rebate from assessment year (2004-2005).

 Medical bills, donation, mediclaim also accounts for.



1) Major problem is that many individual don’t invest in these long term investments which forced them to pay higher tax.

2) Also they are not enjoying the benefits in order to show their income less by the above listed investments.

3) Financial planners sometimes guide their clients in order to invest in this type of investments or rather they unnecessary show this items in order to evade taxes.

 

[rosemarry2]

Re: Income Tax Benefits on Investments

Tax planning can be done on the basis of showing investments in the balance sheet in order to evade paying high tax. Many Salaried employees don’t know how to evade tax? This problem arises when the individual dint have the idea of benefits arising out of long term investments. The following are the major income tax benefits available on certain investments.

They are as follows:


 Premia paid on life insurance policies.

 Provident fund contributions.

 10-15 years deposits under post office savings bank

 Nationals savings certificates

 Unit linked insurance plan of LIC mutual fund

 Subscriptions of home loan account scheme or a notified pension fund of the national housing bank.

 Contributions to personal funds by ba mutual fund or by the national housing bank.

 Contributions to national savings scheme.

 Contributions to equity linked savings scheme of a mutual fund/UTI upto a maximum of Rs. 100000

 Contribution by an individual towards an approved superannuation fund.

 Amount invested in equity shares, debentures of a public company engaged in infrastructure including power sector.

 Education expenses up to Rs.12000 per child eligible for rebate from assessment year (2004-2005).

 Medical bills, donation, mediclaim also accounts for.



1) Major problem is that many individual don’t invest in these long term investments which forced them to pay higher tax.

2) Also they are not enjoying the benefits in order to show their income less by the above listed investments.

3) Financial planners sometimes guide their clients in order to invest in this type of investments or rather they unnecessary show this items in order to evade taxes.

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