Saving of tax

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Querist : Anonymous

Querist : Anonymous (Querist)

15 February 2013 Sir, please tell me that what is the best way to save tax to do investment other that u/s 80C. Means how can we save tax except 80c which is invested by a common person.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

15 February 2013 Section 80C is the Cream Section in which a person really "invests" the amount. He gets back the amount with interest, bonus etc.
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In other sections , for getting deduction a person has to "waste" his money.

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Querist : Anonymous

Querist : Anonymous (Querist)

16 February 2013 I agree with you that to getting deduction a person may be waste of money but tell me some of sections in which we may invest because there are limit in 80C ; 100000. If we want to take deduction more than 100000 then which section we should prefer.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

16 February 2013 My earlier reply was in reference to the liking of " common person" .
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However a special "common man" can enjoy benefits in respect to the following sections of IT Act-
1. Section 80CCG- Rajiv Gandhi Equity Savings Scheme - Benefit available 25000.
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2. Section 80D: Medi Claim 15000+ For Parents 15000 ( 20000 -if parents are Senior Citizens)
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3. 80E: Interest on Educational Loan
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4. 80G: Donation to Charitable Trusts or funds
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5. 80TTA : Deduction in respect of Savings A/c Interest (up to Rs 10000)
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These are certain commonly liked deductions .
However, if you have some patience and some risk bearing aptitude...you may invest in shares for long term ( 1 year or more). The entire profit you earn , popularly known as LTCG...will be tax free.
In deductions you have to spend, where as by investing in good securities, you may earn and have not to pay any tax.
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