This is our Part 2 of tax saving idea & suggestions as part of 80C investments.
Just 4 very simple points which you always need to keep in mind while making any investment decision for your 80C investments.
Summary of the video, in short.
★ You might not realize, but individuals tend to over invest for 80C investments. Always calculate pre-existing commitments such as Provident Fund, LIC premiums or Home loan EMIs (principal portion) first and fill the rest with Term Insurance & ELSS.
★ Always choose a tax saving investment option based on their lock-in period. Getting locked for a longer period is of no use if you need the funds. Following are the popular 80C investments with their lock-in period
· PPF (15yrs)
· Provident Fund (until age 60)
· NPS (until age 60)
· Bank Fixed Deposit, NSCs, ULIPs (5yrs)
· While, ELSS has the shortest lock-in (3yrs)
★ If you believe SIP investing is a better method, then do not do ELSS investing only in December or January when the Company asks for tax proofs. Always build a SIP instead for ELSS as it helps in dollar cost averaging.
★ If you have a girl child, you can invest in Sukanya Samridhi Yojana. Helps in dedicated funds being parked for your girl child and can be used later for higher education. Rate of interest is 7.6% and the interest earned during the period is completely tax free.
If you found the video informative, share it with your network & help them save taxes.
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