Read on to find out you can use this to save on income tax. Not everyone is lucky enough to work for an employer who offers savings plans like a k or an HSA. Note that you’ll need to have a qualifying high-deductible health insurance plan if you want to fund an HSA. Click here to read the full story.
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Generally, most of the employers accept investment proofs from their employees during November to February. This trend indicates that people are searching for the best tax saving options imvestment the Web. It is advisable to plan your taxes from the beginning of the financial year April. But better late than never! You still have 5 more months in this financial year.
The more deductions you’re aware of, the more you might be able to shrink your tax bill — possibly by thousands of dollars.
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11 Smart Investments You Can Make in 2020
Generally, most of the employers accept investment proofs from their employees during November to February. This trend indicates that people are searching for the best tax saving options on the Web. It is advisable to plan your taxes from the beginning of the financial year April.
But better late than never! You still have 5 more months in this financial year. You may end up saving or investing in unwanted investment options. I am sure most of you are aware of different types of tax saving instruments and also the list of income tax deductions which can be claimed under different Sections of the Income Tax Act.
In this post let us discuss — In whose name these tax saving investments can be done under Section 80C? The maximum tax deduction limit under Section 80C is Rs 1. The various investment avenues that can be considered for tax benefits under section 80c are as below. If you are aware of the tax implications at various investment stages, you will be in a better position to pick tax-efficient investment options.
It is essential in order to maximize net returns on your investments. Sometimes, it is OK to pay taxes when you cannot save or cannot invest in right financial products. The cost of buying wrong financial products may outweigh the cost of taxes. Tax Planning is not a goal but a tool. Continue reading :. Sreekanth is the Man behind ReLakhs. The main aim of his blog tax saving investment options 2020 17 to «help investors take informed financial decisions.
These should not be construed as investment advice or legal opinion. Background info: -Joint savings account with my wife in SBI. Dear Vi, May I know who is the primary account holder? Has there been any TDS deductions done by the bank from this account? If so, on whose name the TDS has been deducted? You can verify it in Form 26AS. I am the primary account holder. Suggest you to deposit in to your PPF accounts from your respective independent sole bank accounts.
Dear Amit, 1 — You will be liable to pay taxes on taxable income. Clubbing of income provisions apply. Any income earned by the recipient on the gift shall be clubbed with the income of donor. Related article : Got a Gift? Find out, if it is Taxable or Tax-free? I am planning to invest ELSS in my spouse. Can i show that in my tax deduction?
Dear Rakesh, No, only she can claim tax deduction as the investment is going to be in her. Can my husband show that amount under 80C? Dear Devi, I believe that only you can claim the tax benefit as you are making the contributions. I need information on tax planning. I would like to know the best investments that I can make in other sections and the best plans available to make investments which I can claim in other sections.
Dear sankar. Kindly go through : List of income tax exemptions for FY Tax treatment of various Financial Investments. Hello Sreekanth, this is the first time I have landed to your site. I must compliment you for such an informative article. Hi SreekanthWill you please let me know that Stamp Duty can still be claimed as tax deduction under 80c in FY? Dear Kuldip, Yes, this provision is still available. Also, the property should be a new residential property and not a resold one.
We made FD around 5 lakhs as individual deposit of 50 K Rs each to avoid tax from our house hold savings and land sales 15 years. Also, 10 lakhs received from overseas to our account from my children.
Once FD matured in the end of each yearwe with drawn the cash and made another FD by adding some more cash. Now the total became 25 lakhs and the Interest is crossed TAX limit. Pl note we do not have any proof for them since it is very long. Also, we are senior citizens. Please advise. If you receive any compliance notice, you have to prove the sources of income for this investment.
Kindly take help of a CA in case you get notice. My friend has lost few years papers of Income tax proofs,which he got when he submitted IT returns, and He is working in Software company and he can see all the things on Incometax return website. Now he wants to have a printed proofs of all the years including years, which he lost while changing his rented house from the web site.
You mean let me go to IT returns gov website and let m download the softcopies, you means to say. Let him go to web site and download all the proofs. OR he can provide PAN number to bank and let them check it. He can consider them as ITR proofs.
In case, the emails have been deleted. He can still raise a request on e-Filing Portal. The income tax e-filing portal has an option to send request for the demand notice sent earlier by email to your registered email id if the returns are filed electronically. Hi, very informative article. I am a prospective investor and was looking for profitable options to invest.
I wanted your views about Peer to peer lending and is it a viable option to invest? Dear Asha, It is a decent option. But till the time RBI comes up with guidelines, advisable to stay away. PPF interest is tax free in spouse hand. If, still clubbing will come to picture, when to do that, when PPF account will mature or each year? I am taking specifically where total 3 Lakh invested in both PPF accounts.
I know not a good idea to invest 3 Lakh in PPF. Dear Debendra, Very good question! This is quite useful, Sreekanth. Many times, investors are confused about this aspect. Good to have information captured for multiple products at one place. Please log in. The login page will open in a new tab.
After logging in you can close it and return to this page. Thanks Sreekanth. Dear kumar ji, May I know, what do you mean by Proposer here? Hi Sreekanth, I need to understand the below 1 I am a salaried person and if i invest in some financial instrument for eg.
Best Regards Amit. Hi Sreekanth, My friend has lost few years papers of Income tax proofs,which he got when he submitted IT returns, and He is working in Software company and he can see all the things on Incometax return website. Regards Basavaraj. Hi Sreekanth, adding to above, why he wants them in printed proof, because he wants to apply for home loan for that he has to produce all years. Hi Sreekanth, You mean let me go to IT returns gov website and let m download the softcopies, you means to say.
I repeat as there were spelling mistakes, Let him go to web site and download all the proofs. Hi Sir, Thanks for clarification. Regards, Debendra. Close dialog. Session expired Please log in .
Who is likely to be affected
It’s worth noting that the Tax Cuts and Jobs Act of doubled the standard deductionwhich means that many people who optiojs would have itemized their deductions will no longer find that worthwhile, as the standard deduction will save them. If your employer sponsors a k plan with a matching tax saving investment options 2020 17, that employer match represents a sure thing — but only if you take advantage of it. There are rules and restrictions, though, of course:. You cannot claim common tax breaks under Sections 80C to 80U for these incomes If you have finished all your investmentt related work, then make sure you have not made this mistake. If you don’t already have an emergency fund, think of it as a form of insurance against the unexpected. Consider spreading your risk out on a global scale by investing some of your money in non-U. Investing in ELSS to save tax? Trimming stocks back to your target allocation allows you to cash in some of your recent gains and make sure your risk level is back in line. Here is a step-by-step guide on how to open the account. Read on to know how it can help you. Click here to read the full story.
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