Tax Saving Schemes 2012-13

Tax Saving Schemes 2012-13

Tax Savings is an effective measure to ensure that people save some of their tax liability in a legal way. There are many investment options which provide deductions to the assessee and some of them are listed below. The tax saving schemes are the one of the part of tax planning. Tax planning is legal and everyone should do it to increase wealth.

Public Provident Fund (PPF)

Public Provident Fund or the PPF is one of the most attractive ways where one can reduce their tax liability. This tax saving   scheme is open for all the employees who belong to the public or the private sector. A minimum of Rs. 500 to a maximum of Rs. 1,00, 000 can be invested in this section. Additionally, Government also pays an interest rate of 8% on these investments (which is also exempted from the purview of taxation). For this purpose, an assessee can go to any public sector bank and avail the option.

National Saving Certificate (NSC)

NSC refers to National Savings Certificate where an assessee can invest an amount staring form Rs. 100 and enjoy the same interest rate as in PPF. The exemption applies to 100% in such context and moreover, an assessee can avail the offer of PPF and NSC both at the same time. NSC is the best option to save tax. NSC is the popular tax scheme among tax payers.

    Apart from this, see articles on tax planning   and how to save tax?

        * Tax Planning for Women Assessee (A.Y.2012-13 & A.Y.2013-14)
        * 15 Tax planning tips for all for A.Y.2012-13 and A.Y. 2013-14
        * Tax Planning for Senior Citizens

Post Office

The Post Office Scheme or the POS still stands as one of the most attractive tax benefit offers for people at large today. Any amount invested in this section is also eligible for full deduction.

Life Insurance Premium (LIP)

The sector of Life Insurance serves dual benefit for people as it not only acts as a cushion for people at the time of uncertain sad events but also helps...