3 replies on this article “Tax Saving Scheme (5k per month)”

1. BanyanFA says:

   July 12, 2012 at 10:29 pm

   Navin,
   As Ashal mentioned, Tax schemes have min 3 years lockin. You must also consider that probably from next year after DTC comes into force, the existing Tax schemes may be withdrawn.

   For a safe option, you may want to consider investing into PPF in case you have an account. Even from a non-tax saving perspective, I would strongly recommend using PPF from an investment perspective – as it fulfils the debt component of your portfolio.

   Regards
   BanyanFA

   Reply
2. Ashal Jauhari says:

   July 12, 2012 at 2:37 pm

   Dear Navin, No there is no such instruments where you can save tax & at the same time can withdraw your money after 1 or 2 year. If you are in so much need of the money, please do not save or even think of tax planning, pay tax & enjoy your remaining money. In case of Tax saving MFs, the minimum lock in period is 3Y. Please do note, each individual 5K investment ‘ll be locked for 3Y.

   Thanks

   Ashal

   Reply
   1. NavinAgarwal says:

      July 12, 2012 at 11:13 pm

      @Ashal: Thanks for the information. Will keep that in mind.

      @BanyanFA: If by PPF you mean Provident Fund then I am already investing in PF (my company does it for me). The amount is around 35-40K per month.
      As per Section 80C, I can save upto 60-65k more. So I was thinking of saving 5k per month and show it as tax savings. I had no idea about the 3 years lockin.
      I have been putting them in RD but that isnt helping much, hence the query.
      Also, what is DTC?

      Thanks,
      Navin

      Reply

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