Project report on income tax saving instruments

The information in the Form 26AS is matched with the returns filed by the taxpayer. Instead of taking the safer and more convenient SIP route, taxpayers get caught up in the year-end rush and invest a lump sum in risky assets. Some investment options may not be suitable for certain individuals.

Analysts believe the rates will eventually have to be aligned with the bond yields as per the formula suggested by the Gopinath panel.

As we have often said, SIPs are the best way to invest Project report on income tax saving instruments equity funds. Even so, these are good tax-saving options for those who are eligible. This way you are able to diversify across time.

Taxation Projects

There is no entry load and the investor is charged barely 2. If closed before two years, the investor has to pay 1. Most importantly, the biggest drawback of this scheme is that the interest for the amount deposited is taxable.

However, it is mandatory to provide the PAN number of your landlord to your employer if the yearly rental is more than or equal to Rs. Find out how not to make errors you might regret later. But there are certain drawbacks, such as restrictions on withdrawals and a longer lock-in period.

Banks have cut deposit rates to Still, split your investment into three tranches and invest before 31 March.

A word of advice. If tax has been cut, but that income is not declared by the taxpayer, he will surely get a notice for the discrepancy. But it can also be a great way to save tax. Such schemes are typically characterized by a three-year lock-in period. The wrong reasons for buying life insurance 14 Mar The only insurance policy worth buying is a pure protection term plan.

Smart tip Utilise the tax-free VPF to build up the debt portion of your portfolio. The returns from individual funds vary because each fund has a different portfolio.

While banks have cut interest rates on tax saving FDs, small savings schemes including NSCs have been spared. Even the returns from EPF are tax free on maturity.

This small saving scheme offers tax-free initial deposit for 6 years. Smart tip Open an account in a bank with good online facilities.

Data as on 4 Jan But very few investors have gained from it, because its AUM is only Rs crore. This sum is deducted by the employers from the monthly payroll of employees as a social security scheme akin to a forced-saving towards retirement planning.

NSCs and tax-saving fixed deposits mature in five years and therefore the money comes back to you after five years. But, the interest for the first 5 years is eligible for a deduction as NSC is a cumulative scheme — where interest is reinvested and is qualified under fresh deduction in NSC.

Read this article in: Returns are tax free because long-term capital gains from equity funds are exempt. Smart tip If you hit the Rs 15 lakh ceiling, opt for senior citizen tax-saving fixed deposits that offer about 8. Although Ulip charges have been reduced, pension plans still levy high charges on buyers.

However, the take-home pay of the employee will come down. Though NSCs offer higher rates than most banks, many senior citizens prefer to invest in deposits of their own banks, because they get better service than in a post office.

As for liquidity, these funds have the shortest lock-in period of three years. Smart tip Opt for higher equity exposure in your pension plan when you are young, to gain from stocks. Smart tip Instead of tax-saving fixed deposits, use NSCs to save tax and earn a higher returns at lower risk.

It is time for investors to assess these plans afresh, without being influenced by the chequered history of the category.As Tax-saving schemes offer tax rebates, Under Sec(C) of the Income Tax Act, it is better to invest in the Tax Funds, as we can get good returns & also tax exemption.

58 3. As the stock markets are in the bullish trend it is better to invest in the funds which have Beta values above 4. Average return of sensex is around 18%, since inception.4/4(9). Income Tax Planning: A Study of Tax Saving Instruments Savita, Lecturer in Pt.

Choose the best tax saving instrument for you

Nakiram Sharma Government College, M. D. University, Rohtak reveals that the most adopted tax saving instrument is Life Insurance policy, which got the first rank in this study and section 80C of the Income Tax Act International Journal of Management and Social Sciences Research (IJMSSR) ISSN: 83 Volume 2, No.

5, May Income Tax Planning: A Study of Tax Saving Instruments Savita, Lecturer in Pt. Project Report On Income Tax Saving Instruments. COURSE CODE: ACC (ASSIGNMENT) MATRIC NO: 09AA TOPIC: ‘Income tax is one of the major sources of revenue for all government in Nigeria and it is a factor to be recon with in both the state and the Federal Government is an enforced contribution of money. – Looking for Free MBA Project Reports on Taxation? Look no further, free download & upload Taxation projects for MBA's at Management; An Online Portals for MBA Students & Professionals.

Income Tax Planning. Foreign Exchange He. TAXATION IN INDIA: Income Tax Planning. Project Report. Income Tax Act, is the guiding baseline for all the content in this report and the tax saving tips provided herein are a result of analysis of options available in current market.

Income Tax Planning with respect to Individual Assessee

Every individual should know that tax planning in order to avail all the incentives provided by the Government of India under different statures is legal.

Project report on income tax saving instruments
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