Please suggest on my tax saving plan for 80k per annum and good returns

POSTED BY xtremeinfo ON March 31, 2014 8:27 pm COMMENTS (15)

Hi

After going through this forum,I have decided to quit the 2 plans that i am currently using (LIC jeevan saral and HDfc bla bla) and start from fresh again .

since we can show upto one lakh for tax saving , I am planning to use 80k of that (My salary is 4.5 per annum),I researched in this forum and have 3 options

PPF,Equity and Mutual funds and out of which i know ppf only (its like fd right ? where we pay fixed some for 15 years am i correct?),

Since LIC is required ,planning to do LIC for 25K. PPF 25k  and i dono what to do with rest,

Is equity best option? Am i planning correct? Am i investing more for tax saving?

Please suggest

15 replies on this article “Please suggest on my tax saving plan for 80k per annum and good returns”

  1. ashalanshu says:

    Dear Xtremeinfo, please check your mail.

    Thanks

    Ashal

  2. ashalanshu says:

    Dear Kumar, please click on my name above and get my e-mail id from my profile.

    Thanks

    Ashal

    1. xtremeinfo says:

      Hmm your name is not a hyper link,not able to click it

  3. ashalanshu says:

    Dear Xtreme, for a detailed answer, you need to contact to me over personal mail as I need many personal inputs from you which you w’d not like to put on this open forum. In case you can put all the personal details here, please feel free to discuss here.

    Thanks

    Ashal

    1. xtremeinfo says:

      what is your personal email id by the way 😀

      1. xtremeinfo says:

        and my email is xtremeinfo@yahoo.com, please let me know what are the details that are required so that i can mail them.

        Thanks
        Kumar

  4. ashalanshu says:

    Dear Xtremeinfo, so you mean to say no matter what comes but your life insurance policy should pay back something as return? How many times have you asked the same thing for your vehicle insurance policy?

    Please think over it.

    Thanks

    Ashal

    1. xtremeinfo says:

      Yeah, I got the same example previously when i asked about it,thats y i have said , I will start thinking about it.

      Now i am reconsidering my plans why tax saving? probably i can get more if i reasearch on other options where i can get more returns for 60k per annum. out of which tax deduced might be low..

      ashalanshu,u r an expert in these things.Please tell me if its wise to go for tax saving option for 60 or 80 k OR Invest in somethings else

      If invest please help me on 1 or 2 links in which i can look into for better returns.

      Ultimately my goal is more returns,not tax savings.
      I have realized that just now..sorry for troubling u all..
      but please answer my questions

  5. ashalanshu says:

    Dear Xtremeinfo, why are you not opting pure products? Term plan for your insurance needs and other instruments like FD, PPF, MFs for investment needs?

    Thanks

    Ashal

    1. xtremeinfo says:

      Hmm ,as per my understanding term plans do not have returns so i did not think about it..May be I have to think about it now…Will researarch on it..
      Thanks

  6. ashalanshu says:

    Dear Xtreme, is it life insurance in general or LIC as insurer in particular you are talking about?

    thanks

    Ashal

    1. xtremeinfo says:

      Hi
      I am talking about LIC in general for my self, jeevan anand policy or something ? is it a bad choice?

  7. Hemanth Chandra says:

    Dear Xtremeinfo,

    Please find how much EPF your employer cuts in your salary. That is also included in 80 C section. The amount that you are planning for tax savings is 80 k . Is it after your EPF cuttings ??

    For 80C tax saving purposes, there are different options like PPF,NPS,Insurance Premium, ELSS (tax saving mutual funds) etc.

    By the way you wrote, I think you didn’t understand PPF clearly. So please read articles on PPF and understand it clearly before you start investing in PPF. Below is one article by Manish on PPF. There are 3-4 articles written by Manish on PPF . Check those.

    https://www.jagoinvestor.com/2008/04/providend-fund.html

    All mutual funds are not eligible for tax exemption. There are some funds called Tax saving mutual funds or ELSS. Only tax is exempted for investments in these.

    Apart from ELSS, no mutual funds are eligible for tax emeption under 80C.

    As you said, “Since LIC is required ,planning to do LIC for 25K” …. what exactly do you mean by this. Do you wish to take some LIC policy which has a premium of 25k ??

    Also do you have life, health insurance ??

    Let me know in case of any doubt.

    Regards,
    Hemanth.

    1. xtremeinfo says:

      hi hemanth.
      thanks for the reply

      Apart from employer PF,I am planning 80k for tax saving.
      I have a question,is 80k very huge amount to do for tax saving,or are ther any other options for tax saving?

      Regarding LIC,I am talking about Life insurance only,planning to take jeevan anand or any other for 25k (is this good option? or should i take life insurance from some where)

      My employer provides health insurance as well.

      Please let me know if i am investing a lot in these things.i am not saving anything else apart from these.

      1. Hemanth Chandra says:

        Dear Xtremeinfo,

        Please go through the below thread on why should you not take any investment linked insurance plans (jeevan saral and jeevan anand are such types)

        https://www.jagoinvestor.com/forum/need-a-reason-to-surrender-lic-jeevan-saral-and-jeevan-anand

        The idea of yours to take an insurance product just to save income tax is not correct. Insurance is to be taken for the well being of your family in your absence.

        Life Insurance – you have to take a term insurance only. Don’t take any ULIPs, money back policies as the insurance cover provided by these policies is very less and returns from them is also very very less compared to normal investments.

        Remember ‘Insurance and Investment should not be mixed’

        So, please take a pure term insurance plan. You have to take an insurance plan only when you have dependants on you. If you don’t have any, don’t take insurance now.

        Also, for the FY 2013-14, you cannot do any tax savings as the financial year is completed. Hope you are planning for 2014-15

        Please do a google search as ‘PPF’. you will get a lot of articles. Please read those. PPF is a simple and good instrument of investment and you can understand is very easily.

        Also read articles on Tax saving FDs (generally lock in period of 5 years) and Tax saving Mutua Funds (generally lock in period is 3 years).

        Understand these clearly and invest accordingly. Please invest in a product only when understand it or else u will be in big trouble.

        Also, there are a lot of sections in which you can save tax. Just do a google search. You will get lot of articles on tax saving.

        Also, are you investing in mutual funds. If not, learn about them and start investing only if you are confident on them.

        Let me know in case of any clarification required.

        Regards,
        Hemanth.

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