Updated Feb 27, 2021 | 05:58 IST
Section 80C of the Income Tax Act includes various investments and expenses you can claim deductions on – up to the limit of Rs. 1.5 lakh in a financial year 5 tax saving schemes with guaranteed returns up to 7.6%
New Delhi: Tax planning is extremely important and the best time to start planning your tax-saving investments is at the beginning of the financial year. Most taxpayers procrastinate till the last quarter of the year, resulting in hurried decisions. Instead, if you plan at the start of the year, your investments can compound and help you achieve long-term goals. The most popular tax-saving options available to individuals and HUFs in India are under Section 80C of the Income Tax Act.
Small-savings inflows are down to a trickle
Satya Sontanam
BL Research Bureau |
Updated on
February 27, 2021
Growth in collections in post office small-savings schemes is set to touch a low in FY21, going by the Revised Estimates in the Budget documents.
The collections are pegged at ₹8.7-lakh crore, up just 3 per cent over FY20. This pales when compared to the strong double-digit growth in the last few years. This is the lowest growth in the last decade, barring FY12, when collections dipped by 19% y-o-y.
At that time, investor interest had shifted to bank deposits, thanks to the 9-9.25 per cent returns offered on bank deposits then. FY12, thus, saw a robust 13.8 per cent growth in bank deposits (over FY11) at the cost of small savings schemes. Investors scouted for better rates in FY16 again, when collections in small-savings schemes jumped by a whopping 46 per cent y-o-y, the best show in the last decade. While equity markets remained lacklustre and bank depos
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Whether sudden or unexpected, the death of a loved one/parent is a harrowing time for us. It becomes even more so if the person happens to be the family s breadwinner. In the circumstances, handling finance matters while coping with emotional pain, can be stressful. The survivors/legal heirs have to go through a number of official procedures while claiming the assets of the deceased owner. While it is difficult to prepare yourself emotionally, here are the steps you can take to manage the practical issues a bit more easily.
We had carried a similar article on ‘Things to do after the death of a parent’ by Rajeshwari Victor and this is a more updated version of the article.
Updated Feb 25, 2021 | 09:00 IST
All private-sector lenders will be allowed a share in government-related banking transactions such as taxes, revenue payments, pensions and small savings schemes. Now, all banks can handle collection of taxes, pension payments and small savings schemes. | Photo Credit: BCCL
New Delhi: All private sector banks now will be allowed to conduct government-related banking transactions such as tax and pension payments, and small savings schemes, the finance ministry has announced. The big booster dose is likely to improve efficiency and competition while aiding smaller banks earn revenue.
At present, all state-run banks and three private-sector lenders HDFC Bank, ICICI Bank and Axis Bank can offer transactions related to taxes and other revenue payment facilities, pension and small savings schemes, among others.
Synopsis
Deduction under section 80C of the Income-tax Act, 1961 can reduce up to Rs 1.5 lakh from the gross total income in a financial year. Here is how this section works and can help you save tax in a financial year.
Getty Images Eligible investment instruments include Employees Provident Fund (EPF), Public Provident Fund (PPF) etc.
One of the most common deductions available under the Income-tax Act, 1961 is section 80C.
The deduction under this section can be claimed only if an individual opts for the old/existing tax regime in a financial year. On the other hand, if an individual opts for the new concessional tax regime, then the individual will not be able to claim deduction under this section.