Save Tax u/s 80C

ELSS

There are some mutual fund (MF) schemes specially created for offering you tax savings, and these are called Equity Linked Savings Scheme, or ELSS. The investments that you make in ELSS are eligible for deduction under Sec 80C.

It also provides an opportunity for long term capital appreciation. An ELSS fund manager invests in a diversified portfolio, predominantly consisting of equity and equity related instruments that carry high-risk and have the potential to deliver high-returns.

Since it is an equity fund, the returns from this scheme are market determined.

Top five features of ELSS Funds
  • Tax-saving
  • Three-year lock-in period
  • Can be held even after the completion of three years
  • Offers dividend as well as growth options
  • Tax Saving instrument
Tax Treatment

The returns from an ELSS fund are tax free in your hands. The long term capital gains from an ELSS are tax free as well. This is because no tax is levied on equities that are held for more than a year. Since an ELSS falls under section 80C, you can claim up to Rs 1.50 lakh from your investment as a deduction from your gross total income.

 

Term Insurance

In the event of an unforeseen situation who will take care of your liabilities and responsibilities? It is here that the importance of term insurance is felt. The lumpsum that your family will get as death benefit can bring financial stability and pay off the liabilities. It is the real support that your family can have if something happens to you. Term insurance is important for everyone and especially more for the bread earner of the family.

“Family is not an important thing, it’s everything.” – Michael J. Fox

Don’t be short-sighted. Get Term Insurance and secure your family’s future. Save their harassment by financially securing them through a term plan.

  • Get lumpsum amount in the event sudden death
  • See off all your loans and liabilities
  • Provide money so that your family continues to live with pride
  • Term Insurance also takes care of family in case of your disability or critical illness:
  • Provides supplementary income in case of loss of income due to accidental disability or illness
  • Get lumpsum amount if diagnosed with critical illness
  • Additional sum insured in case of accidental death
Tax Benefits of Term Life Insurance

Term life insurance plans come with excellent tax benefits. You can avail lucrative tax benefits under Section 80C and Section 10 (10D) of the Income Tax Act, 1961. Additionally, the premiums paid for the Critical Illness Benefit also qualifies for a deduction under Section 80D.

Note: Tax benefits are subject to changes in tax laws. Please consult your tax advisor for details.

PPF

The Public Provident Fund is savings-cum-tax-saving instrument in India, introduced by the National Savings Institute of the Ministry of Finance in 1968. The aim of the scheme is to mobilize small savings by offering an investment with reasonable returns combined with income tax benefits.We at Merks Capital Private Limited  would recommend an investment in PPF (Public Provident Fund) as one of the means to build long-term corpus .PPF investments are eligible for deduction under Section 80C of the Income-Tax Act. Here’s the lowdown on guidelines and process on opening a PPF account with a bank or post office.

National Saving Certificate

National Savings Certificates, popularly known as NSC, is an Indian Government Savings Bond, primarily used for small savings and income tax saving investments in India. It is part of the postal savings system of Indian Postal Service (India Post).

These can be purchased from any Post Office in India by an adult (either in his/her own name or on behalf of a minor), a minor, a trust, and two adults jointly. These are issued for five and ten year maturity and can be pledged to banks as collateral for availing loans. The holder gets the tax benefit under Section 80C of Income Tax Act, 1961.