Hi, I want to save tax (under section 80C) by investing in a safe instruement like NSC or a 5 Year tax saving term deposit.
I read an article today saying that NSC is better than a 5 year tax saving bank term deposit.
I did not understand that article at all.
Can anyone tell me what is the best option if I want to go for a section 80C tax saving instrument that has minimum lock-in period and maximum interest rate and the interest earned on such investment is also tax free?
BEST IS NSC ITS 5 YEARS LOCKING PERIOD. YOU CAN INVEST IN LIC HAVE GOT NEW THINGS.YOU CAN CHECKOUT WITH LIC AGENT.....TIME BEING THIS 2 R GUD OPTIONS FOR U..PPF LOCKING PERIOD MORE...
hello varun
you want to save tax u/s 80C its also an investment for you
there are so many sources to invest like
1. invest in Life Insurance
2. House Loan Premium Amount
3.Children Education fee (full time education) & Max children two
4.NSC bonds etccccc.....
in this lock in period is minimum five years
& we have to pay amount minimum for three years like for insurance etc & amount payable minimum by after two years after three years means (after five years) the refundable amount is totally exempt in Sec - 10
now you should see that in which you should invest the money
Thanks
What is the tax treatment on interest earned by investing in NSC/KVP ?
i think so they dont give intrest to you yearly they increase you NSC with yearly int .
firstly we have to deemed it as our Income from Other Sources
then we deduct this u/s 80C
thanks
Hi Varun
Interest accrued on NSC is taxable under income from Other sources,
and deduction for the same is available U/s 80C
Minimum Lock in period is in Tax saving Bonds ( Mutual funds) i.e. 3 years
But they are equity linked to market
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