|SENIOR CITIZENS SAVINGS SCHEME|
|• 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 ExemptionsEligible for exemption u/s. 80C for overall investment upto Rs.1 lakh. Interest earned is taxable.
|POST OFFICE TIME DEPOSIT ACCOUNT|
|• 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• Amount withdrawn before 5 years period, tax will have to be paid on the withdrawn amount treating it as the income of that year.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 ExemptionsOnly 5 years term deposit with a maximum investment of Rs.1 lakh eligible u/s. 80C.
|PUBLIC PROVIDENT FUND (PPF)|
|• 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• After 15 years, entire balance can be withdrawn.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 ExemptionsInvestment 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.
|UNIT LINKED INSURANCE PLAN (ULIP)|
|• 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 ExemptionsInvestment 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.
|LIFE INSURANCE POLICIES|
|• 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 ExemptionsEligible 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.
|LIC's JEEVAN AKSHAY VI|
|• 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 ExemptionsEligible 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 ExemptionsPremium paid up to Rs.1 lakh p.a., either under Single Premium or regular Policy is totally exempt u/s. 80CCC (Under 80C)
|EQUITY LINKED SAVINGS SCHEME (ELSS)|
|• 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).
|NATIONAL SAVINGS CERTIFICATES|
|• 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.