As we near the last quarter of 2020/21, here’s a look at how best to review your tax savings and take steps, if needed, to add that extra bit of money in your pocket.
Individuals can save taxes either by investing in government-notified products or by claiming deductions or exemptions on certain type of expenses. When it comes to investments, the eligible products that give you deduction benefits are basically of two types — fixed-income investments and equity-related investments.
Fixed-Income Products
For fixed-income products, the minimum lock-in period is five years. The five-year tax-saving fixed deposit is available in most banks and post offices. One can invest up to ₹1.5 lakh in a single financial year, and get deduction benefit under Section 80C. However, the interest earned on this deposit every year is not exempted from tax. Moreover, due to significant reduction in overall interest rates, tax-saving FDs are no more the best bets. Banks offer a maximum interest of up to 6 per cent, and IndiaPost 6.7%.
The second option in the five-year term is the National Savings Certificate (NSC). Similar to FDs, the maximum one can invest is up to ₹1.5 lakh per financial year and claim deduction under Section 80C. Compared to bank FDs, NSC offers better annual return of 6.8 per cent.
“Tax-saving FDs offer periodic returns, while the NSC does not. Hence if regular returns are important to a person, tax-saving FDs would be better suited,” says Suresh Sadagopan, Founder, Ladder7 Financial Advisories.
Long-Term Options
Denne historien er fra December 13, 2020-utgaven av Business Today.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra December 13, 2020-utgaven av Business Today.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
"Moving to cloud helped us grow❞
What was the problem you were grappling with?
She's Got Time
MORE WOMEN ARE BECOMING WATCH CONNOISSEURS, SEEKING OUT BOTH JEWELLED AND TECHNICAL WATCHES FOR THEIR STYLE AND CRAFTSMANSHIP
RISING STAR
PARUL GULATI IS a name that's been steadily gaining prominence in the Indian entertainment industry after she appeared on season 2 of Shark Tank in 2023. She has become a multifaceted personality who effortlessly transitions between acting and entrepreneurship.
Building on a Legacy
WHEN ZAHABIYA KHORAKIWALA stepped into her role as Managing Director of Wockhardt Hospitals over a decade ago, she confronted formidable challenges that have since turned into achievements.
LEADER IN INNOVATION
AS FEDEX'S PRESIDENT (Middle East, Indian subcontinent and Africa), Kami Viswanathan has a lot on her plate.
WAITING IN THE WINGS
Here are those who missed out as they have not yet completed a year in office; they'll be strong contenders in 2025
A DECENT PROPOSAL
IN TODAY'S WORLD OF TRYING TO CREATE AN EQUITABLE SPACE, BOTH MEN AND WOMEN CONTRIBUTE TO THEIR HOUSEHOLDS. WOMEN ARE ENCOURAGED TO HAVE THEIR OWN SAVINGS POOL AND INVESTMENT ROUTINE. GIVEN THIS, HOW SHOULD FUTURE BRIDES APPROACH FINANCIAL PLANNING?
Women and the STEM Bias
EMPOWERING WOMEN IN STEM WILL NOT ONLY BENEFIT INDIVIDUALS, BUT ALSO STRENGTHEN THE ENTIRE INDUSTRY, DRIVING INNOVATION AND PROGRESS.
ROCKET WOMEN
WOMEN IN INDIA ARE NOT ONLY VENTURING INTO SPACE BUT ARE ALSO STARTING TO SPEARHEAD THE COUNTRY'S EFFORTS IN THE GLOBAL SPACE RACE.
ONE STEP FORWARD
THE NUMBER OF WOMEN INDEPENDENT DIRECTORS IS GROWING STEADILY, BUT IT'S A LONG WAY FROM GENDER PARITY. MUCH MORE NEEDS TO BE DONE TO BREAK THE GLASS CEILING IN BOARDROOMS.
