HIDDEN TAX SAVING INSTRUMENT

With every financial year end or at the beginning, we are flooded with lot of tax saving instruments under various sections.....


But we don't realise that we are saving 12% of annual basic salary under sec 80C without our knowledge and without any physical investment by us.


haven't you got it ?


Itz Provident Fund ,which is deducted from your salary every month.


PF is a composition that is resulted by combing 12 percent of basic salary and Dearness allowance.


The amount saved is a direct saving under SEC 80C.


Hence when you plan to invest 1 Lac (100%) under SEC 80C which is the limit .
just pause & re-think.... weather to invest 100% or 88%......


Lets see how it works :-


Illustration:


Suppose the basic salary is Rs 10,000 pm & DA is Rs 2,000 pm.
& Group insurance deducted by company is approx Rs 50 pm.


The PF contribution at the end of the financial year would be Rs 17,280
along with this group insurance would be is Rs 600


The above two aggregates an total approximately Rs 18,000


Hence 0nly balance Rs 82,000 needs to be planned for investment under SEC 80C.


Thus amount saved is amount gained for other Investment !!!