Tax Planning with ELSS and INFRA BONDS
As you know, now only few days are remain left to grab the
opportunity of the Tax savings U/s. 80C and 80 CCF of IT Act.
Under Section 80C of
Income Tax Act,
Certain Investments are deductible ( Up to a Maximum of Rs. 1,00,000/- ) from
your Income. This Tax Break is available in all Tax Brackets, and this is one
of the easiest form of the Tax Planning.
The instruments eligible for deduction under Section 80C fall into Two broad categories:
(A). Fixed Rate
Instruments, which offer fixed returns and are suitable for conservative,
risk-averse investors. Here primary attraction is the safety – the deposits are
insulated from market fluctuations. Such instruments typically offer annual
after-tax rates of return in the range of 5% to 10%. It includes,
(1). Tax saving Fixed Deposits
(2). National saving Certificates
(3). Post Office Term Deposits etc.
(4). Public Provident Fund – PPF
(5). Senior Citizens Savings Scheme.
(6). Employee Provident Fund - EPF
(7). Guaranteed Annuity Plan from Life Insurance Companies.
(8). Guaranteed Return Endowment Plans from Life Insurance
Companies.
(2). Market –
Linked Investments, which offer the potential of higher returns, are also
exposed to higher risk. The Three important types are Equity Linked Saving Scheme
(ELSS) ; Unit Linked Insurance Plan (ULIP) and Retirement or Pension Plan from
Mutual Fund.
Market-linked instruments such as ELSS ; Ulips and Pension
plans Of Mutual Funds are usually investments in equity markets – equity markets are volatile,
so such schemes are expose to potentially higher market risk. How ever historically,
on a long term basis, the rate of return on equity has out-paced inflation, and
market investment has contributed significantly to investor wealth.
Under Section 80CCf of
Income Tax Act,
Certain Investments are deductible ( up to a maximum of Rs.. 20,000/- ) from
your Income. This Tax Break is available in all Tax Brackets.
The instruments eligible for deduction U/s. 80CCF is only
Infrastructure Bonds.
It is said that “ Timely
Planning of financial matters not only helps in reducing Tax Liabilities, but
also in creating opportunities to build
Wealth.”
In this context Infrastructure (Infra) Bonds offer an
attractive investment options to investors.
Section 80CCF of an Income tax Act provides an additional
deduction of Rs. 20,000/- ( Over and above the Rs. 1,00,000/- allowed
under Section 80C ) from the taxable income of an individual for investing in
long term Infra Bonds. So if you are in 30% tax brackets you can save up to
Rs.6180/-. by investing in these Bonds.
These bonds come with some unique features,
Ø Tenure – 10 Years
Ø Lock-in Period – 5 Years
Ø Rate of interest – Fixed
Ø Easy Liquidity – Trading through stock Exchange
See below web page for Comprehensive article about
Infrastructure bonds :
Now currently there are only below mentioned Infra Bonds
are available in the Market and they are, it’s so close to March 31st.
( 1 ). IFCI Infra Bonds – Series V.
( 2 ). PFC Infra Bonds.
( 3 ). PFS Infra Bonds
( 4 ). IDFC Infra Bonds – Tranche III.
I here with posting,
The Calculation Sheet
of all above mentioned Infra Bonds ( Currently Open )
http://www.box.com/s/7aa8489d6bb0a81a30c8
http://www.box.com/s/7aa8489d6bb0a81a30c8
A wonderful
Explanation and calculation of how you will get the Tax Saving by making the
combination of investments of ELSS (u/s 80C ) and Infra Bonds (u/s 80CCF) -
The details are for the Category : 1( Male - Individual and HUF ) below 60
years
http://www.box.com/s/3b299e4fa8aae143f544
Calendar Of All
Infrastructure Bonds (
Accounting Year 2011 – 2012 )
http://www.box.com/s/a6e139799f13ec88ee66
http://www.box.com/s/a6e139799f13ec88ee66
Flowchart Of Sec.80C
& 80CCF.
http://www.box.com/s/a4fc6e4e7cb74b65fb30
Date : 21/03/2012.
Jigisha Nikhil Shah
Till next time , Money Happy Returns.
Date : 21/03/2012.
Jigisha Nikhil Shah
Blog : http://jigisha-shah.blogspot.in/
Follow : www.facebook.com/shah.jigisha
È: +91 98796 85266
8 : jigisha201053@gmail.com
8 : nikhil201053@gmail.com
