Yep, what will you do with an extra Rs 45,000 in Tax Savings ?
If you fall in the 30% tax bracket (i.e. if you earn > Rs 10 lakhs p.a.), that’s how much you can save if you invest in Tax Saving Mutual Funds, also popularly known as Equity Linked Savings Schemes ( ELSS Funds ) – That’s like Rs 45,000 of free money which you would have otherwise paid to the Government of India in taxes.
- If you earn between Rs 2.5 to 5 lakhs, your tax slab is 10% and you can save ~ Rs 15,000
- If you earn between Rs 5 to 10 lakhs, your tax slab is 20% and you can save ~ Rs 30,000
Why does the Income Tax Department provide an incentive to save taxes through investment?
Unlike the USA or other developed nations, in India we do not have social security. Government does not contribute anything major for our retirement years. They want you to save enough during your earning life so that you are fully covered for your retirement. Under section 80C of Income Tax, you can invest upto Rs.1,50,000 per year in specified investment products and claim tax benefit as high as Rs 45,000 (assumed 30% tax bracket). This tax benefit acts as an incentive for most of us to save. However, mostly people commit mistake in choosing the right financial product.
Here are a few popular saving options that qualify for tax savings u/s 80C:
- Life insurance premium paid towards life of self, spouse or any child.
- Contribution towards Public Provident Fund Scheme.
- Subscription to the NSC (VIII Issue).
- Mutual fund Equity Linked Savings Scheme.
- Term Deposit (Fixed Deposit) for 5 years or more with Scheduled Bank in accordance with a scheme framed and notified by the Central Government.
So yes, if you need to make investments towards tax savings, you can do so for free through Finqa.
Finqa offers a free online investment platform for easily making your tax saving investments. If you have an existing demat account, just enter your details here and we will schedule your investments. You make the payment online and receive the proofs via email.
No filling paper forms or hunting for an agent to get your work done at the last minute.
All those who invest through us are eligible to win prizes via our ‘Lucky Dip’. Just answer one simple question: ” What will you do with an extra Rs 15 / 30 / 45,000 that you will save in taxes ? ”
What do you stand to win ?
- All participants get complimentary filing of Income Tax returns.
- Top 20 answers get a complimentary ‘Starter Plan‘ worth Rs 2500 each.
- One’Lucky Dip’ Prize Winner : A Moto G (2nd Gen) smartphone from Motorola
A brief overview about Finqa
We started out last year by providing pure Financial Planning services on a paid model. Over the last couple of months, we realised that while everybody wanted financial advice / guidance about where they should invest their money, they didn’t necessarily want to get a complete detailed financial plan. They also weren’t sure about paying up without experiencing our service.
To meet this requirement, we now have a Free plan – It’s a guidance based model where we validate your investment objectives, guide you and provide an online platform to make your investments. There are no strings attached and you only execute if you completely understand our recommendations and are comfortable with them.
This also gives you an opportunity to try our service before you sign up for a financial plan. Yes, we do make money and you can read about how we do it here.
More info about us is available at www.finqa.in
P.S: It will be great if you can help spread the word among friends / family who may need to make tax saving investments. And if you work at a corporate and can help connect us to your HR department, it will make our day even better 🙂
Cheers