As salaried employees, every month a certain amount is deducted as income tax based on your income levels. But the government offers tax benefits on certain qualified investment instruments.
Why repeating these articles again and again? The reality is , 1.The limit under Section 80C has not been enhanced. 2.Out of 1 Lakh, standard savings will be around Rs.60000(How? 9360EPF, 25000SchoolFees, 25000LICPolicy). Further, If you are in a saving mode for the last 6 years, your NSC might have been matured, which you are going to save further in this FY'11-12.say your 25000 invested in 2005 will become 40250 by this date. Adding the two above, the total limit under 80C already got exhausted. Then what else you can do?
Re: Tax savings
by bhanumurty on May 06, 2011 02:54 PM
The government can do a lot more for the salaried: 1.Enhance the limit under 80C upto 3 lakhs.Not like it is mentioned under DTC.Just increase the present limit upto 3 lakhs.You may not be able to save the entire 3 lakhs, but there will be a scope and freedom. 2.The government can use this Debt instrument for the development of the country, without suffocating people with uncontrollable inflation and too many fiscal consolidations.