What is the best way to use Section 80C?

Elss

The Best Best is PPF.. Risk free standard returns and no tax on the interest too.

ELSS may give better returns but subject to market risk.. No guarantee that you will get high returns.

With NPS you can save extra 50000 in tax under section 80CCD(1B)

There are several options you can choose to save tax under Section 80C of the Income Tax Act. These include:

1. Equity Linked Saving Scheme (ELSS)
2. National Pension Scheme (NPS)
3. Unit Linked Insurance Plan (ULIP)
4. Public Provident Fund (PPF)
5. Sukanya Samriddhi Yojana (SSY)
6. National Savings Certificate (NSC)
7. Fixed Deposit (FD)
8. Employee Provident Fund (EPF)

Anyway better think of next year filing too  based on Feb month Budget updates because in new tax regime all the deductions for 80c will not be applicable

80c 150000

80ccd(1b) nps 50000

80d Medical insurance

-for self & family 25000

-for parents 25000, if parents senior citizens 50000

So Total deductions comes as up to 225000 or 250000

For government employees, employees salary deducted and  contributed to  Nps which goes to 80ccd(1) and such amount is to be included in 80c 150000 limit

In my paybook I have declared that I will invest 1lakh within this march and that part is already exempted now if I failed to invest so what will happen?

In my opinion ELSS is better option for 80C as it gives better return than others, less lock-in (better to keep for long term) and we can combine it with tax harvesting upto 1L under LTCG for minimising tax.

Whoever is putting ELSS as 12-15 should check how the elss funds are doing since 2021 December.

For ELSS, it can go negative too. It definitely is not positive always. If that was the case FDs/Bonds would never be so popular with 5-9%.

ELSS is better in terms of long return but it also has LTCG I.e. income is not tax free for returns > 1L

You also have flexibility of lesser lock in.

So you should assume your income say X (taxable), after n, say 5 yrs, if you fall in 30% tax bracket (considering today's brackets), then return of ELSS with avg of 10% will yield Y income.

So total X + ( Y- 1 L) after N yrs will be the taxable income

But I always feel ELSS is better mid risk mid return.

You can invest 5-7k per month, 1 k in each funds to avg out the returns

If you do not have Health Insurance/ life insurance, that is the first thing you should go for before thinking of investment

ELSS has given 12 to 18% till date ... its always good if you can stay for long term. Personally i would suggest only ELSS after other necessity expenses like insurance and pf.

If you still have doubt, pls pm me. Will share the whole list of

ELSS VS PPF VS GOLD IN THE PAST 20 YEARS.

CAN BASE YOUR DECISION ON THAT !!!

Don't know about other investment returns...but I did TSFD this year...and HDFC gave me 7.1% interest on that

if u check 3 yr rolling return of ELSS funds u'll find there is more than 50% chance of getting above 10% return, combined with the least lock in period ELSS is best tax saving instrument !! 

Not to use it in now the best way.

best way to use Section 80C

Most people don't know but if you're a salaried person, ask your employer to deduct the maximum PF (12%). Generally, they deduct a minimum - of Rs. 1800.
For 20+LPA,  you automatically cover the complete 80c be PF contribution only. 
This brings another 1.5L of tax exemptions as the employer also deducts the same amount from your CTC to match your contributions. 

Hence a total exemption of 3L under in PF per year. 

Even if you're less than 20LPA, always contribute the max to PF to double that amount as employer contribution.

Best thing is padhai Karo salary itni badha lo ki PF se 80c cover ho jaye then look for better investments for your money 

It's not the duty of government or Income Tax Department to guide you on where to park ur funds(investments) and how long you have to hold them(lock ins)

It's so funny to Invest mostly into Government schemes to avoid taxes to Government.

It's like to avoid  10%/20%/30%(whatever the tax base you are in) of 150000+50000 people tend to invest 200000 in total and wait for the years and years.

It's you, u have to decide for your hard-earned money whether to dump in Banks, Invest or Trade in Stock market, Come up with Start-up ideas else to buy Land & accumulate Properties or invest in Gold  or in other way Spend lavishly how ever you like.

Anyways striving from developing country to developed country, our Government itself removed all this deductions in New Tax Regime and trying to make it mandatory in coming years so that it makes a CSE or IT guy not to bother about where to invest their funds thinking March month is approaching

My tax savings:

80C

1. 60K employee contribution to EPF

2. 90K to ELSS (45 - 45 split between quant and Mirae tax)

80CCD (1B)

1. 50K to NPS

Extra:

1. Many companies offer something called corporate NPS. Under this, your company will contribute a maximum of 10% of basic to your NPS account. This basically helps in reducing your taxable income. (For me it's ~ 50K Annually)

2. Companies also offers sodexo meal pass which can further reduce your taxable income by another 30-35K

Total savings: 1.5L + 50K + 50K + 30K = 2.8L

Hi Guys

After all deduction I need 60k more investment to reach the 5lk limit. Any short term investment suggestions, because may be I will switch to new regim nxt fin year.

• If I invest 60k in ELSS should I get 60k tax reduction according to 80c.
• Any app/website suggestions to do ELSS investment.
• Also any Life insurance + return (elss linked) suggestions?

80c rebate on premium payment,

7% guaranteed IRR with 30yr regular income tax-free+ 10/10D benefit tax benefit+Maturity tax free +additional benefits =life cover benefits 11time to 40tims in increasing form +accidental cover, for further information

i do 60% in ELSS And 40% in PPF problem solved

The best way is PPF and boost your investment in compounding form without any tax. Only demerit is 15 years lock in time. And yes highly PPF benefit is showing if you extend your PPF amount after 15 years

If anyone interested in investing in good tax savings fund let me know

If anyone interested in LIC plans let me know. Thanks

How do you do advance tax computation. As today is the last date for depositing it. ?