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)

legend101 wrote:

Elss

Why you feel ELSS is better than the others? 😊

Rosh_0007 wrote:
Why you feel ELSS is better than the others? 😊

Shortest lock in, better returns. This is for the investment area of 80C, if you have expenses, use that first (insurance, tuition fee etc)

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)

legend101 wrote:
Shortest lock in, better returns. This is for the investment area of 80C, if you have expenses, use that first (insurance, tuition fee etc)

ohh . ok. understood ... is there any average returns, we can get from ELSS... ? any idea

Rosh_0007 wrote:
ohh . ok. understood ... is there any average returns, we can get from ELSS... ? any idea

Almost all have generated 8-12% last year and down 5-7% in last 6 months. Average over 10-20 years will be around 13%

legend101 wrote:
Almost all have generated 8-12% last year and down 5-7% in last 6 months. Average over 10-20 years will be around 13%

better than ppf , fd etc

maddydilip wrote:

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)

Now I am confused. between PPF and ELSS... @abhishek012 any suggestion from your end.. @hotchap

bobby_123 wrote:
Now I am confused. between PPF and ELSS... @abhishek012 any suggestion from your end..

ELSS is any time better than PPF , in fact it's best tax saving instrument 

bobby_123 wrote:

Now I am confused. between PPF and ELSS... @abhishek012 any suggestion from your end.. @hotchap

	ELSS	NPS	PPF	SSY	NSC	FD
Returns	12-15%	7-8%	7-8%	8.5%	7-8%	6.5-7.5%
Lock-in period	3 years	Until retirement	15 years	21 years	5 years	5 years
Taxation on returns	Yes (on LTCG greater than Rs. 1 lakh)	Yes (partially)	No	No	Yes	Yes

thanks to @legend101  .. done some researched on it.

bobby_123 wrote:
better than ppf , fd etc

Not really, you have to pay taxes on these returns, and also on fd interest, but ppf is tax free

bobby_123 wrote:

Now I am confused. between PPF and ELSS... @abhishek012 any suggestion from your end.. @hotchap

Rosh_0007 wrote:

Tax saving options under Section 80C

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)

NPS doesn't come under 80C. Also, it's tax saving FD. Not the normal one. Be aware.

bobby_123 wrote:

Now I am confused. between PPF and ELSS... @abhishek012 any suggestion from your end.. @hotchap

Chose elss if you want less lock in period and possibility of better returns. Use ppf if you need safe fixed returns and can wait till retirement.

KingRocks wrote:

NPS doesn't come under 80C

It does, you can invest 2l total, 1.5 in 80c and 50k in 80ccd. It goes in 80ccd after your 1.5l of 80c if consumed

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

legend101 wrote:

It does, you can invest 2l total, 1.5 in 80c and 50k in 80ccd. It goes in 80ccd after your 1.5l of 80c if consumed

yes. true...

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

bobby_123 wrote:

Now I am confused. between PPF and ELSS... @abhishek012 any suggestion from your end.. @hotchap

@Rosh_0007 already guiding you in right path..

Vinayvickey wrote:

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

Resident individual with total income up to 5,00,000 do not pay any tax due to rebate under both old and new regime. It is proposed to increase the rebate for the resident individual under the new regime so that they do not pay tax if their total income is up to 7,00,000.

Rosh_0007 wrote:

Tax saving options under Section 80C

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)

NPS doesn't come under 80C it is beyond 80C

Rosh_0007 wrote:
Why you feel ELSS is better than the others? 😊

Bcoz he must be having returns over 30% in last three years..

Mee to having 

legend101 wrote:

It does, you can invest 2l total, 1.5 in 80c and 50k in 80ccd. It goes in 80ccd after your 1.5l of 80c if consumed

So you mean 80C and 80CCD is the same?

KingRocks wrote:

So you mean 80C and 80CCD is the same?

80CCD is extension of 80C which can only be filled by NPS

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?

KingRocks wrote:

So you mean 80C and 80CCD is the same?

To Some extent yes, 80ccd is having 2 subsections 80ccd(1) and 80ccd(2)

ccd1 is for employee contribution to nps(to be included in 80c 1.5lac deduction)

ccd2 is for employer contribution to nps(employer can claim deduction in his business income because he paid it out of his pocket)

In 2015, budget comes up with insertion of 80ccd(1b) extension to 80ccd(1)which says employees can contribute in nps in excess of above limits which is eligible for deduction up to 50k

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.