How to save income tax and earn more on RS 20 LACS?

Hi,

- Invest in the following modes.

a) PPF as the interest rate is around 8%.

b) FD for longer period

c) NPS

d) Mutual funds

e) Stocks for long period

Thanks

You have said you have already invested 20 lakh and earning interest income.

However if you want to invest in some tax saving option you can invest in tax saver mutual funds which can give good return.

Also you can invest in NPS to save some tax.

Do you use full 150000 limit provided under section 80C of the income tax act?

You cna invest in PPF.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Hi,

I am sure you will be taking the benefit of Sec 80c i.e. getting a deduction of 1.5 lakhs by investing in PF, PPF, LIC, Home loan repayments etc. You can also avail the benefit of HRA.

You can invest in NPS every year to a maximum of 50k to save taxes. These will help in tax savings.

As far as investments are concerned, the type of investment will depend on your risk appetite and your short, mid and long term fund requirements.

If you are ready to take some risk and you are looking at long term, i can suggest you to go for monthly equity SIPs . If you need monthly income, you may invest in short term debt oriented funds rather than putting the money in FDs. You can also invest in PPF every year to a max of 1.5 lakhs.

If you are interested in MF's, my suggestion is to invest in a phased manner to get the benefit of averaging. With the volatility in the market it is not advisable to put all the money at one go.

Hope this helps. You can also connect with me for a more detailed discussion on this topic.

Regards,

Nikhil.

Dear Sir,

Hope you are doing well !

You can invest in followings to save tax:

1.ELSS/Mutual funds subject to market risk.

2.NPS- you will get additional tax benefit u/s 80CCD.

3.PPF -8% interest

4.Term deposits- around 7% interest

5. Shares- totally based on risk capacity and term.

6. Liquid funds-interest around 7.80%-8%

Thanks & Regards,

Payal Chhajed

Hi,

Looking at the current market scenario, it is not advisable to invest whole amount in shares & mutual funds.

Hi,

No, you should not invest the said 20 lacs amount in mutual funds or stocks.

Invest in secured modes:

1. PPF

2.NPS

3.FD

4.ELSS

5.Take the section 80C benefits

Hi,

You can save 1.5 lacs, by investing in PPF, mutual funds, LIC etc. You can save additional 50k by investing in NPS.

For investment advice, you should talk to an investment expert who can guide you after assessing your risk taking capacity and ultimate goal. Please diversify your investment in different assets. Don't put all your eggs into one basket.

I may help you in investing in different avenues.

Let me know if you need any assistance in investing so as to optimise your returns