Tax Saving cum investment

POSTED BY Abhishek ON March 25, 2012 2:02 pm COMMENTS (5)

Hi, I am a working professional. Please help me in making my portfolio, which can save tax as well help me in long term investment.

My financial details:-
AGE : 24 yrs
Monthly salary : 29000/-
Taxable income after HRA and other deduvtion: 7500/- p.m.

My current fortfolia:
PPF account : suggest how much should i invest in it
Fidelity tax Advantage MF : 2000/- (SIP per month)
Canara Robecco Tax MF : Planning to buy from April on Rs 2000/- P.m.
Please suggest on Term Plan : Planning to Purchase for Rs 1 crore costing me Rs 7200/- p.m.

Since DTC will affect ELSS, should i purchase Canara Robecco MF. Please suggest me the correct portfolia for me. I am willing to invest for long period( i.e. about 15 years or more). My priority is TAX saving as well as High return through optimum investment. I am seeking these information for coming financial year( i.e. 2012-13). Thanx in advance.

5 replies on this article “Tax Saving cum investment”

  1. Rajiv94 says:

    I have two questions related to purchasing MFs and keeping them in one’s porfolio:-

    1. Will this be good to start investing in Quantum Tax Saver fund also as i already have Reliance Tax saver fund started? And, it will also give me room to save tax. Or only there should be one Tax Saver Fund in the portfolio?? Quantum Tax Saver Fund is into Large and Mid Cap whereas Reliance Tax Saver Fund is into mid and small Cap stocks. They also have overlapping percentage in terms of stock is around 8% only.
    So, want to know whether we should keep 2 Tax Saver Funds in one’s portfolio or not?
    My horizon is atleast 15 years.

  2. Abhishek, as Ashal Said, you need not worry saving/investing keeping tax in your mind.
    Tell you, i liked your plan, especially keeping in mind you are young 24 years old guy.

    Considering that you are yet to get married, Go ahead and invest as much as you can in good equity mutual funds.

    HDFC Top 200/Frankling Blue Chip/DSP Top 100 can be some of the good MF.

    Considering that you are in lowest tax bracket or No tax, invest money in LVB that is offering 10.5% – This is for debt.

  3. Dear Abhishek, if the data given by you is true, my dear friend 7500 Rs. mly = 90K Rs. yly So your yly taxable income is well below the zero tax limit of 2L Rs. for next FY i.e. 2012-2013. Hence no tax liability on you.

    Please cross check the data provided by you as answer ‘ll change if the data changes.



    1. Abhishek says:

      Thanx for ur reply…

      Actually my salary = 29000/- (Take home salary after pf deduction)

      So annual taxable salary = 29000 * 12 = 348000/-

      Taxable Income = 348000 – 200000 = 148000/-

      After HRA deduction = 148000 – 49200 = 98800/-

      After Deduction Travel Allowence = 98800 – 9600 = 89200/-

      So, Taxable income (Per annum) = 89200/-

      I hope this will give u clear picture.

      Please guide me accordingly.
      I am new to investment, But ready to take long term calculated risk.

      1. TheZionView says:

        You have taxable income as as 89200. Now you have not mentioned the EPF amount that goes our monthly please calculate that X 12 will give you a yearly out go which is deducted under 80C.

        Assuming you have 35000 as EPF out go.You will be left with taxtable income as



        So you will need to put 4500 a month in ELSS scheme

        You have two Elss Fidelity and Canara i would suggest to keep one out of this two.

        Start a monthly SIP of 4500 in that ..this willl make you income tax to zero

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.