• Individual above 60 years (VRS persons 55 and above) can invest.
• Duration 5 years. Can be extended for further 3 years.
• Multiple / Joint accounts are allowed.
• Maximum Limit 15 Lakh.
• Lock-in period 1 year. Premature closure allowed with penal interest.
• Interest @ 9.20% p.a. payable quarterly.
• 1 Lakh invested earns Rs.2300/- per quarter.
• Interest earned is taxable.

Tax Exemptions
Eligible for exemption u/s. 80C for overall investment upto Rs.1 lakh. Interest earned is taxable.

• Any Individual can open an account singly or jointly.
• More than one account can be opened without any limit.
• Accounts can be opened for 1,2,3 and 5 years.
• Interest for 5 years deposit is 8.4%.
• Premature withdrawal after 1 year attracts 2% penalty on interest applicable.
• Amount withdrawn before 5 years period, tax will have to be paid on the withdrawn amount treating it as     the income of that year.

Tax Exemptions
Only 5 years term deposit with a maximum investment of Rs.1 lakh eligible u/s. 80C.

• An Individual can open only one account besides his GPF account.
• Option to pay each contribution in one lumpsum p.a. or in 12 installments.
• Period : 15 years (Minimum 16 annual contributions). Can be continued further every 5 years.
• Investment : Minimum Rs.500/- and Maximum Rs.1,00,000/- p.a.
• Interest @ 8.70% compounded annually.
• Can withdraw 50% of the balance from 7th year onwards.
• An amount equal to withdrawal can be invested from current year's income to make the account a self       sustaining one.
• Loan upto 25% of balance available (2 years ago) is allowed upto the end of 5th year.
• Second loan is given after clearing the first loan.
• No loan is given after 6 years from the date of first subscription.
• After 15 years, entire balance can be withdrawn.
• Interest earned is totally exempt u/s. 10(11).

Tax Exemptions
Investment upto Rs.1,00,000/- qualifies for deduction u/s. 80C.

• A term deposit to be opned with a scheduled Bank in the prescribed form.
• Minimum Investment Rs.100/- Maximum is Rs.1,00,000/-.
• The term will be 5 years.
• Premature encashment not permitted.
• Income Tax benefit amount of term deposit invested along with PPF / LIC / NSC / ULIP etc. up to a maximum of Rs.1,00,000/- is eligible for deduction u/s. 80C.
• Interest earned on the deposit is taxable.

• Can be invested Singly / Jointly.
• Duration : 10 or 15 years.
• ULIP can be taken in the name of spouse and Children - major or minor.
• Provides Life Insurance, Accident Insurance coverage and also reinvestment of dividend in units.
• Target Amount : Minimum Rs.15,000/-; Maximum Rs.5,00,000/-.
• Personal accident cover up to Rs.50,000/-.
• On maturity, NAV + Bonus @ 5% for 10 years and @ 7.50% for 15 years term (cash equivalent of units will be paid).
• Can remain in the plan to participate in further growth (0.5% additional maturity bonus).

Tax Exemptions
Investment upto Rs.1 lakh is eligible for tax exemption u/s. 80C. Dividend declared is fully exempt u/s. 10(35). Maturity Bonus is taxable in the year of maturity.

• Variety of Plans available.
• Major Benefit : Life Risk Cover
• Encourages to save compulsorily.
• Besides covering life risk, gets tax benefit both at entry (premiums paid) & exit point (Maturity + Bonus).
• Asset is created without having one.

Tax Exemptions
Eligible u/s. 80C for overall investment up to Rs.1 lakh & maturity amount (investment + bonus) is totally exempt u/s. 10(10D). For policies taken on or after 01.04.2003, premium exceeding 20% of the Sum Assured and policies taken on or after 01.04.2012 premium except 10% of the S.A. in any year, will not enjoy tax free returns u/s. 10(10D) or benefit u/s. 80C.

• Immediate Pension Plan for individual between 30 & 85 years.
• Minimum Investment : Rs.1,00,000/-.
• e.g. Investment of Rs.10 lakh for age at entry 40 will give monthly pension of Rs.5892/-.

Tax Exemptions
Eligible for exemption u/s. 80C for overall investments up to Rs.1 Lakh.

• Any individual between 18 & 70 years can take a policy.
• Investment : Minimum Premium Rs.2,500/- p.a.; Rs.10,000/- for single premium; Maximum - No Limit.
• Minimum pension starting age is 50 years and maximum is 79 years.
• Guaranteed Pension either for 5, 10, 15, 20 years or for life time.
• Option to commute 25% of Pension.

Tax Exemptions
Premium paid up to Rs.1 lakh p.a., either under Single Premium or regular Policy is totally exempt u/s. 80CCC (Under 80C)

• Most favorite investment.
• Open ended. Lock-in 3 period years.
• Many of the funds have given excellent returns during recent past. Maximum tax benefit plus maximum returns.

Tax Exemptions
• Eligible for exemption u/s. 80C for overall investment up to Rs.1 lakh.
• Dividend earned is exempt u/s. 10(33).

• Can buy Singly / Jointly.
• Duration 6 years / 10 years.
• Interest rate is 8.50% p.a. for 5 years and 8.80% for 10 years.
• Interest accrued between 1st and 5th year is deemed to have been reinvested.
• Investment & deemed reinvestment up to Rs.1,00,000/- is eligible u/s. 80C.


The most important rule of tax planning is that it is no different from financial planning. A professional tax consultant like Ayers can educate you as to the tax advantages applicable to commercial real estate investing, formulate a plan to assess property value to ensure lower tax rates and provide complete and accurate reporting in accordance with property tax rules and regulations.

Taxation laws in many jurisdictions provide for legal means of saving the amount of tax due. This is referred to as tax avoidance. Tax avoidance is legal but tax evasion is illegal. Tax saving schemes should therefore be based on what is legal only...Thanks for these all schemes..!!

Sigma Tax Pro

Your Comments, Suggestions, Feedback on this topic will be highly appreciated