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Want to save tax?
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A thread on different Tax Saving products!
Hit "retweet" for to educate maximum investors:-
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(1/11)
But dont know how?
A thread on different Tax Saving products!
Hit "retweet" for to educate maximum investors:-
Lets go
(1/11)
Tax Saving FDs:-
Liquidity: Fixed Deposits have lock-in period of 5 years.
Rate of Interest : Interest rate across different banks
Tax Treatment : Interest earned in taxable.
(2/11)
Liquidity: Fixed Deposits have lock-in period of 5 years.
Rate of Interest : Interest rate across different banks
Tax Treatment : Interest earned in taxable.
(2/11)
Public Provident Fund(PPF)-
Liquidity:Lock-in period of 15 years,can be further extended by 5 years. Partial withdrawals allowed after 7 years.
Rate of Interest : Currently is 7.1% p.a.
Tax Treatment : Interest earned is tax-free.
(3/11)
Liquidity:Lock-in period of 15 years,can be further extended by 5 years. Partial withdrawals allowed after 7 years.
Rate of Interest : Currently is 7.1% p.a.
Tax Treatment : Interest earned is tax-free.
(3/11)
Employee Provident Fund(EPF):-
Liquidity: Can withdraw PF balance after 2 months of leaving job and does not take up employment within two months with an employer covered by PF Act
(4/11)
Liquidity: Can withdraw PF balance after 2 months of leaving job and does not take up employment within two months with an employer covered by PF Act
(4/11)
Rate of Interest : Interest rate on the EPF is 8.5% for the financial year 2020-21.
Tax Treatment :Entire PF balance (including interest) is tax-free, if withdrawn after continuous service of 5 years
(5/11)
Tax Treatment :Entire PF balance (including interest) is tax-free, if withdrawn after continuous service of 5 years
(5/11)
Equity Linked Saving Scheme:-
Invests in equity shares,hence no return in guaranteed.
Liquidity:-Can be redeemed 3 years after investments
Tax Treatment:-Carries Long Term Capital Gains Tax.
If gains of more than 1 lakh are redeemed in a year,10% tax needs to be paid
(6/11)
Invests in equity shares,hence no return in guaranteed.
Liquidity:-Can be redeemed 3 years after investments
Tax Treatment:-Carries Long Term Capital Gains Tax.
If gains of more than 1 lakh are redeemed in a year,10% tax needs to be paid
(6/11)
National Pension Scheme:-
Eligibility :People b/w the age of 18-65
Liquidity: Generally locked in till 60yrs.Premature exit allowed.
Tax Treatment : Up to 60% of corpus tax free. You are mandatorily required to use the remaining 40% of your corpus to buy an annuity.
(7/11)
Eligibility :People b/w the age of 18-65
Liquidity: Generally locked in till 60yrs.Premature exit allowed.
Tax Treatment : Up to 60% of corpus tax free. You are mandatorily required to use the remaining 40% of your corpus to buy an annuity.
(7/11)
Unit linked Insurance Plans:-
Eligibility : An investor can buy ULIP for self/spouse/ child
Liquidity: Interest rate varies as it is market linked
Tax Treatment : Investment and withdrawals & maturity amount are tax-free
Eligibility : An investor can buy ULIP for self/spouse/ child
Liquidity: Interest rate varies as it is market linked
Tax Treatment : Investment and withdrawals & maturity amount are tax-free
Sukanya Samriddhi Yojana:-
Eligibility : Parents can open an account girl child till age of 10
Liquidity: The scheme has a maximum lock-in period of 21 years.
Rate of Interest :7.6% currently.
Tax Treatment : Investment and withdrawals & maturity amount are tax-free
(8/11)
Eligibility : Parents can open an account girl child till age of 10
Liquidity: The scheme has a maximum lock-in period of 21 years.
Rate of Interest :7.6% currently.
Tax Treatment : Investment and withdrawals & maturity amount are tax-free
(8/11)
Senior citizen savings scheme
Eligibility: Senior citizens aged above 60 years
Liquidity: The lock in period for this scheme is five years..
Premature closure Allowed after one year with a penalty of 1.5%.
After two years, investors can withdraw with a penalty of 1%.
(9/11)
Eligibility: Senior citizens aged above 60 years
Liquidity: The lock in period for this scheme is five years..
Premature closure Allowed after one year with a penalty of 1.5%.
After two years, investors can withdraw with a penalty of 1%.
(9/11)
Interest Rate-7.4% currently and revised every quarter.
Tax Treatment:Interest earned is taxable.
(10/11)
Tax Treatment:Interest earned is taxable.
(10/11)
National Savings Certificate
The National Savings Certificate is a fixed income investment scheme that you can open with any post office.
Interest rate: Currently 6.8% p.a., which the government revises every quarter.
Maturity period: The maturity period is 5 years.
(11/11)
The National Savings Certificate is a fixed income investment scheme that you can open with any post office.
Interest rate: Currently 6.8% p.a., which the government revises every quarter.
Maturity period: The maturity period is 5 years.
(11/11)
