Can you help me in saving tax and some financial planning ?

POSTED BY drgaurav75 ON January 3, 2014 12:25 pm COMMENTS (10)

I have invested 1.5  lac for the last 3 yrs in lic pension plus and 1 lac in jeevan ankur in the last 2 yrs on my wifes behalf. I on the other hand am investing 1 lac for the last 2 yrs in elss mutual funds (Reliance tax saver,canara robeco and idfc). i am planning to stop my wifes policies and invest in elss mutual funds and star comprehensive insurance policy.

As I will be stopping my wifes policy i may not be able to invest in any tax saving instrument in this financial year and will have to pay tax on the return i get from lic pension plus plan. how do i save tax in this regard. I on my part am planning to buy online term insurance plan for 1 cr and continue with my elss mutual funds. is this the right approach. plz advise

10 replies on this article “Can you help me in saving tax and some financial planning ?”

  1. ashalanshu says:

    Dear Drgaurav, she can not save tax on pension policy surrender. Regarding her investment in section 80C now, Please ask her to invest in PPF (if it’s there) or invest in Tax saver MFs.



  2. drgaurav75 says:

    thanks ashalanshu u have finally hit the nail on the head.i had posted this question to save her tax for this FY under 80 c . she pays 1 lac per yr for the above policies in feb so as she is closing these policies she will not get any rebate this time. also the refund from lic pension plus will be about 1.58 lac and this will again be taxed. this question was about saving tax on all of this amount. kindly advise . regards Gaurav

  3. ashalanshu says:

    Dear Drgaurav, as she is an independent tax payer, what about her tax saving under section 80C in current FY?



  4. rahul123 says:

    Dear Dr Gaurav,

    Can you please provide some more information (like: Your age (or the person in question who want to save tax), risk taking capability, for how many years you are ready to lock your investment, under which section you want to save tax etc)


  5. drgaurav75 says:

    my wife is paying the premium as she herself is a practicing doctor. now is it possible for her to save tax in the above scenario.i hope my question is now fully understood

  6. rahul123 says:

    Dr Gaurav,

    Who is paying premium for your wife’s policies? If you are the one who is paying then clubbing provision will be applied, if she is the one who is contributing from her source of income then there will be tax as per her tax slab.

    If you are paying the premium for her policy then her incomome from it will be clubbed to your income. it doesn’t matter whether she has pan card or if she is filing her (incorrect) retrurn.


  7. drgaurav75 says:

    my wife has a separate pan card and files a separate itr so that is her money and not mine.i have framed the question in this way.

  8. ashalanshu says:

    Dear Drgaurav, the money invested in wife’s policy is your money and you w’d have to pay tax on it due to clubbing provisions of section 64. That’s what I mean regarding Tax evasion. What benefit w’d you get from ELSS at this stage for your wife?



  9. drgaurav75 says:

    hi ashalanshu i think u have misunderstood my question. i am asking advise to save tax and not evade it. there is difference between the two approaches so plz read my querry carefully and then choose to answer or avoid it. regards drgaurav75

  10. ashalanshu says:

    Dear Dr Gaurav, why are you not continuing your original approach of Evading TAX?



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