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)
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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)
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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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