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NSC Certificates

Jay Kishan Sharma (Head Article) (249 Points)

01 December 2010

Suppose as a Taxpayer,i wud like to make investment (of Rs 40000-50000 for this P-Y) as per Section 80 C of the Income Tax in order to take deduction under chapter VI A. My Choices for investment are in :-

1.NSC Certificates

2.LIC premium

Which one is the better option? Keeping in mind the liquidity position of the Investment & safety of my money..

Kindly suggest me a better way to investment.

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6 Replies

Devendra (Chartered Accountant) (4775 Points)
Replied 01 December 2010

Investing in NSC is a better option.

Regards,

Devendra Kulkarni

Ketan (Ass. Finance Manager) (92 Points)
Replied 01 December 2010

Dear,

I Fully Agree with Devendra, but LIC is also the better option which covers our Insurance too. & both are Givt. under takings so both are good option.

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 01 December 2010

Consider a 3rd Option of Public Provident Fund

1) deposits are qualified under 80C upto 70000

2) Interest is tax free ( at present 8%)

3) no binding for fixed subscripttion , one can deposit miniumum 500 to 70000 at any time or interval during the year .

Sandeep Surana (Practicing Chartered Accountant) (156 Points)
Replied 03 December 2010

Dear,

you invest in LIC so that you cover both of option as you above mentioned and also insurance on your life

priya (ca) (74 Points)
Replied 08 December 2010

PPF IS BLOCKED FOR LONGER PERIOD MUTUAL FUND SPECIFIED UNDER SEC 80C IS ALSO GOOD ONE.(AS NOW A DAYS EVEN INSURANCE SECTOR INVESTS OUR MONEY IN MUTUAL FUND.) AND BLOCKED FOR THREE YEAR.

CA PARAS BAFNA (Practising CA ) (33423 Points)
Replied 10 December 2010

Priyaji,

Lock in period for ULIPs have been increased from three to five years. This has largely been done because IRDA wants to ensure that ULIPs are treated as a long term insurance product and not as any short term product. All ULIPs, except pension, are annuity products and have to have either a mortality cover or a health cover. W.e.f. 28.06.2010