Tax Saving Plans

I am doing CA Article ship from Mumbai and I am in Final year looking for the details about Tax Saving Plans. Will you please provide me list of some Tax Saving Plans which is available in India and also provide me details like what benefits and schemes of those Tax Saving Plans?

[Shaleen]

Tax-saving is an important part of financial planning. An intelligent tax-planning strategy can serve the dual objective of helping individuals meet their financial goals and save tax in the process.

List of Tax Saving Options:
1 Public Provident Fund:
Benefits under Public Provident Fund (PPF)

The investor enjoys the rebate on his investment under section 80C of I.T. Act 1961
Interest income on PPF and the final amount is considered as tax free
Investment in small amounts can be made every year for a longer duration

2 Unit Linked Insurance Plans:

Benefits under Unit Linked Insurance Plans

Investments under ULIPs are eligible under Section 80C of the Income Tax Act.
Maturity earnings from ULIPs are tax exempted

3 Fixed Deposits:

Following are the salient features of tax saver fixed deposits in India:

The fixed deposit is locked for 5 years. You cannot withdraw your investment prematurely.
The minimum amount of purchase is 100 and then in multiples of that.
The maximum amount of purchase is 1,00,000.
The maximum amount of claim is 1 lac.
The rate of interest varies, which can further change in future.

4 Post Office Saving Options:

schemes offered by India Post are:

Recurring Deposit Account (5 Year)
Time Deposit Account
Public Provident Fund Account (15 year)
National Savings Certificate (VIII issue)
Senior Citizen Savings Scheme

5 Mutual Fund
Being covered under the Section 80 C of the I. T. Act of India, this type of investment plan helps in a total exemption of INR. 100, 000