Top tax savings scheme in India

There are many as per your requirements and need of that money you expect in future.

  • Bank FD Min : 100 Max : 8%-10%
  • PPF Min : 500 Max : Compounded at an annual interest of 8%
  • NSC Min : 100 Max : Compounded on 8% twice a year
  • Infrastructure Bonds Min : 30,000

Max : 1, 00,000 Compounded on 5% to 6% or 8.7% to 11.71%,

  • Life Insurance Schemes Depends on policy Depends on policy
  • ELSS Min : 5,000

Max : 1, 00,000 Based on market performance

  • ULIPS Depends on plan Depends on plan

Bank Fixed Deposits
In a bank fixed deposit saving plan, a specific amount of money is invested in the bank for a certain period of time by allotting a static rate of Interest. The minimum investment in most of the banks is ` 100. At present the rate of interest in most of the banks is between 8%-10%.

Benefits under Bank Fixed Deposits:

The investment in bank fixed deposit saving plan is tax free under section 80L up to a limit of ` 12,000.
The deposits will be secure as they are indemnified under the Deposit Insurance & Credit Guarantee Scheme of India.
The investor can apply for loans upto 75%-95% of the amount deposited under the bank fixed deposit against the receipts of the fixed deposits
Bank Fixed deposits are best to opt for if you want to invest your money for an extended period of time besides getting high returns.

Public Provident Fund (PPF)
Public Provident Fund (PPF) is supported by the government and is generally safe with comparatively high returns. The minimum limit of investment in PPF is Rs. 500 and the maximum is upto Rs. 1,50,000 per annum. At present PPF is compounded at an annual interest of 8%. 

Benefits under Public Provident Fund (PPF):

The investor enjoys the rebate on his investment under section 80C of I.T. Act 1961

Interest income on PPF and the final amount is considered as tax free
Investments in small amounts can be made every year for a longer duration
Investments are fixed deposited for 15 years
Balance amount held in Public Provident Fund is tax exempted from wealth tax

National Savings Certificate (NSC)
Referred by its ellipsis NSC, National Saving Certificate is a post office savings plan. Like PPF, NSC is also supported by the government and is one of the secure investment alternatives. There is no maximum limit on investment; however, the minimum investment limit is Rs. 500 which can be issued in small amounts of  Rs. 100, Rs. 500, Rs. 1,000, Rs. 5,000 and Rs. 10,000. The interest on investment is compounded on 8% twice a year.

Benefits under National Savings Certificate (NSC):

The investor enjoys tax rebate on initial 5 years under section 80C of Income Tax Act
Documentation can be guaranteed as safety against a mortgage to banks or Government Institutions Provision of encashment of documentations via banks.
However, the investment in NSC is locked in for 6 years and is taxable under ‘income from other sources’.

Infrastructure Bonds
An investor can save on taxes by investing in Infrastructure Bonds as mentioned under Section 88 of the Income Tax Act, 1961. The maximum investment is Rs. 1, 00,000 and the minimum limit is Rs. 30,000. The investments will be fixed deposited for 3 years and the interest will be compounded on 5% to 6% or 8.7% to 11.71%, if the tax break is considered.

Benefits under Infrastructure Bonds:
Investments in infrastructure bonds from different banks are eligible for a rebate under Section 88 of the Income Tax Act.
However, the interest will be chargeable; the investor can assert tax exemptions against Rs. 15,000 under Section 80L.

Life Insurance Schemes
While applying for Life Insurance plans look for schemes which not only provide high returns but also maximize your insurance policy. The maximum and minimum limit of investment, it lock-in period and returns depends on the terms and conditions of the cover. To qualify for rebate under Section 88, the total premium amount should be within Rs. 70,000

Benefits under Life Insurance Schemes

The investor can enjoy rebate on his investments under section 80C

Equity Linked Savings Scheme (ELSS)
ELSS is a savings plans associated with equity markets. The maximum investment amount is Rs. 1, 00,000 and the minimum amount is Rs. 5,000. The investments are fixed deposited for three years and the ELSS returns are based on market performance.

Benefits under Equity Linked Savings Scheme (ELSS)

The entire investments done under Equity Linked Savings Scheme qualify for tax deduction under 80C of Income tax Act, 1961.

Unit Linked Insurance Plans (ULIPS)
ULIPs operate like a mutual fund does and offers a life insurance. Both the maximum and minimum amount and lock-in period of investment depends upon the terms and conditions of the plan. The premium paid by the investor is invested in instruments like commercial bonds, public securities and stocks.

Benefits under Unit Linked Insurance Plans

Investments under ULIPs are eligible under Section 80C of the Income Tax Act.
Maturity earnings from ULIPs are tax exempted

What is the procedure for 80G registration?

Under Section 80G, citizens are actually enabled derivations for presents to become created towards rational research or nation improvement. All evaluations are permitted this thinking except the ones possessing an income (or even misfortune) from a service or even possibly a calling.

Dedications created to recommended support gets as well as beneficent organizations meet all criteria for derivation under portion 80G. This area uses derivations approximately half or even 100% of the present subject matter as far as feasible expressed in the Earnings Income Tax Action. To benefit the conclusion, you ought to have invoice including title, address, FRYING PAN, entrance number of the count on alongside the label of the factor, total offered. Presents could be created in actual money or even by means of financial networks. Yet, money gifts outperforming Rs 2,000 don’t qualify.

Depending On to Section 80G of the Income-charge Show, 1961, an individual might guarantee a finding of present generated using assessable income (banning long haul funding boosts under Area 112/112A or brief capital rises under Segment 111A), subject to certain conditions.

The commitment should be actually helped make to beneficent organizations, reservoirs, and so on mentioned in Section 80G. You might check out whether the organization or shop is employed for declaring final thought under Section 80G here.

Under the Revenue Tax Process, certain roles or even endowments are geared up for a commitment end under Section 80G. NGOs or even other non-benefits should look for registration and are actually absolutely looked into due to the IT Team before being enabled such an affirmation. This resides in lighting of the fact that such groundworks will certainly generally entice a greater number of endowments coming from corporates and individuals organizing to serve altruism while obtaining a bargain on a charge.

What you give is what you receive, in addition, just in case you provide for a selfless trust fund that has a 80G verification, already, you will definitely receive bill special cases either party or even absolutely. A NGO or Part 8 Business signed up under Part 12A will definitely engage the company to profit charge denial under Section 80G. It is actually of many outrageous crucial for all NGOs to get Segment 12A as well as 80G enlistment.

NGOs with 12A enlistment possess the capability to make certain a complete evasion coming from the Revenue Tax Division. No matter, a compassionate trust having a 80G underwriting influence the bit of breathing place to attract dynamically possible benefactors for offering massive information.