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Which is the Best 100% Tax Saving Investment?

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tax4wealth
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Published on 03 Oct 2019 / In Investment Planning

Which is the Best 100% Tax Saving Investment?


• Two types of Investments:
1. Tax Saving investment
2. Non Tax Saving Investment

• There are 3 Stages of Taxability and Assumptions.
1. Contribution
2. Accumulation
3. Withdrawal

• Non Tax Saving Investment.
It is not covered under section 80 C.

1. TTE
Taxable
Taxable
Exempt
Eg – Recurring Deposits, FD , Bonds etc.

2. TET
Taxable
Exempt
Taxable
Eg – Mutual Funds & Stocks.

3. TEE
Taxable
Exempt
Exempt
Eg – Investment in Residential Property.


• Tax Saving Investment
It is covered under Section 80C

4. EET
Exempt
Exempt
Taxable
Eg – ELSS Mutual Fund
NPS ( Annuity Part is Taxable)
5. ETE
Exempt
Taxable
Exempt
Eg – RD’s, Post Office, Senior Citizen Savings etc.

6. EEE
Exempt
Exempt
Exempt
Eg – EPF, PPF
NPS (Lump sum Part is Exempt)

• Additional Deduction is 50,000 ( Fifty Thousand)



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