BHAT & BHAT ASSOCIATES - TAX PLAN TIPS

Public Provident Fund Scheme:

Who can open ? : This account maybe opened up by an Individual or Hindu undivided family in his name or in the name of his family members.

What is the Tenor ? 15-year tenure (extendable by a maximum of five years).

Withdrawal / Loan Facility : Partial Withdrawal after 7 years / Loan allowed after completion of three years.

What is the Rate of Interest : 11% p.a. compounded annualy.

Where account could be opened : Head Post office or Specified Branches of Nationalised Banks.

Tax Benifite : Ded u/s 88. (20% tax rebate up to maximum invetment of Rs.60,000/- pa.). Interest is Tax free.

National Savings Certificates (VIII issue) :

Who can open ? : This account maybe opened up by an Individual or Hindu undivided family in his name or in the name of his family members.

What is the Tenor ? 6 year.

What is the Rate of Interest : 11% p.a. compounded annualy.

Where account could be opened : Head Post offices.

Tax Benifite : Ded u/s 88. (20% tax rebate up to maximum invetment of Rs.60,000/- pa.). Interest is Exempt u/s 80 L.

Life InsurancePolicies:

who can open ? : This account maybe opened up by an Individual or Hindu undivided family in his name or in the name of his family members.

What is the Tenor ? 5 to 55 years.

Where account could be opened : LIC / LIC Agents.

Tax Benifite : Ded u/s 88. (20% tax rebate up to maximum invetment of Rs.60,000/- pa.). Any sum received under LIC Policy including maturity bonu etc is non taxable.

Pension Scheme of LIC :

Premium paid under Jeevan Suraksha plan of LIC up to Rs.10,000/- can be claimed as fully exempt U/s 80CCC. Under this policy, policy holder is entitled to receive a fixed monthly pension after retirement.

This benefit is available to Individuals / HUF in the name of members / dependents.

The Mediclaim policy of LIC / GIC :

Premium paid under Mediclaim Policy of LIC / GIC up to Rs.15,000/- can be claimed as fully exempt U/s 80D. This policy cover heacy hospitalisation charges for specified ailments.

This benefit is available to Individuals / HUF in the name of members / dependents.

Equity Linked Savings Scheme issued by Specified Mutual Funds:

Investment in specified mutual funds.

Tax rebate : 20% up to maximum investments of Rs. 10,000/- in a year (u/s 88).

Lock in period : Three Years.

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