TAX SAVING INVESTMENT OPTIONS FOR FINANCIAL YEAR 2015-16
We are in the last quarter of the Financial
Year and again it is the time when everybody is looking at various investment
options not for the sake of investing but solely to reduce their tax burden. It
is good to plan your taxes well in advance but it is equally important to
invest wisely. Thus one should make most of the Tax exemption available under
various Sections while being very careful with their Investments. It is
advisable to diversify your investments so that you are adequately covered and
are able to maximize your wealth at the same time.
potential investment options for the Investors. Individuals based on their
needs and preference may chose to invest in them, as it will not only serve as
a Tax Saver but are viable Investment options too.
Options U/S 80C (Deductions up to Rs 1,50,000/-)
Provident Fund (PPF): Public Provident Fund Scheme is for Individuals who are looking
at long term Investment option but are reluctant to take any risks. PPF not
only offers decent return on Investment but also protects your Investment from
potential market risks. Investment is eligible for Tax Deduction.
Linked Saving Scheme (ELSS): This Investment is designed mainly for
Individuals looking at short term Investment options and also are willing to
take moderate risk with their investment. In my opinion, with Equity market
slowing down, it is a good time to invest in ELSS. Investment in this scheme is
eligible for Tax Deduction.
Saving Certificate (NSC): It is good investment option for Individuals who are looking for
short term investment schemes without taking any risk with their money. This
scheme provides decent return on Investment. Investment is eligible for Tax
Insurance Plans: Every Individual should have a Term Insurance plan in his/her portfolio.
Term plan is very economical and offers greater financial protection to your
loved ones in case of any eventuality. Insurance Premium is eligible for Tax
Insurance Plans (ULIPs): It is a hybrid investment scheme, which provides Insurance cover
and at the same time ensures maximization of wealth. It aims and reaping the
benefits investment in Equity and providing insurance cover in a single plan.
Investment in the schemes is eligible for Tax Deduction.
Schemes U/S 80 CCD 1b (Deductions up to Rs 50,000/-)
Pension Scheme (NPS): It is a social security scheme launched y the Government of India
and is aimed at providing retirement benefits to the Individuals.
Schemes U/S 80D (Deduction upto Rs 25,000/-)
Mediclaim Insurance policies is a must in Health Insurance as it provides
cashless mediclaim treatment to the Individual’s and their family members covered
under the Insurance Plan. It takes care of medical emergencies in the family.
Premium paid on Insurance is eligible for Tax Deductions.
Illness Insurance: Another very important type of Health Insurance is Critical
Illness Insurance. This scheme provides lumpsum benefits incase of any Critical
Illness being suffered by Individual or his/her family members.
mentioned Schemes for Investment as well as to Save Tax for the Financial Year 2015-16. Individuals may also check out Sukanya Samridhi Scheme and Senior Citizen Savings Scheme if they are eligible for investment in the same.