Section 80C, even a layman who doesn’t have thorough knowledge about Income Tax knows about this. Under Section 80C of the Income Tax Act, government gives tax benefits to certain financial products in order to encourage savings. The investments made in these products are eligible for Tax Exemption up to a limit of Rs 1 lakh. If your annual income is more than 500000 and you invest Rs. 1 lakh in this investments you save Rs 33,000 in taxes.
The concern is how many of you know about the investments that come under Section 80C. People are aware only about ULIPs; this scenario is because insurance companies are promoting their products massively to increase the sales. But understand ULIP is not the only product that offers Tax benefit under section 80C. In this article we are introducing all the investments which come under section 80C.
Generally people think about investments only in the month of February or March because they are concerned only about Tax saving, they never bother to understand the productivity of the investments. In this scenario there is a possibility of losing money that you have saved without paying tax.
For Example: Mr. X’s annual income is Rs.300000. His total tax liability is Rs. 14000. By investing Rs. 100000 in any investments that come under Sec-80C he can save Rs. 10000. But by making an investment in a wrong product he may lose more than 20000. This is where you need to concentrate.
While choosing a place to park your investment you need to be very careful because the effectiveness of investments depends on many factors such as investment objective, age, risk aversion, economic conditions etc.
"Kindly guide me about the hidden costs of Franklin Templeton funds,Reliance Funds ,Bajaj Life Insurance and Birla Sun Life (Freedom 58) funds."
- vijaya chandran, 18th July 2009, Saturday"Hi Mutual Fund Costs"
- Gururaj, 18th July 2009, Saturday"important and read "
- hari, 18th July 2009, Saturday"Diffeence between Open ended & Close ended Mutual fund"
- rajiv bhattacharjee, 18th July 2009, Saturday"can u send the details what are the real hidden cost that occurs in mutual fund that the fund managers tell while we are newly invest in mutual fund "
- srinivas.s, 18th July 2009, Saturday"informative article"
- nilesh, 18th July 2009, Saturday"Hi, It was wonderful reading through the article on hidden cost.However hows it it to be known what are the hidden cost of the fund also it might happen that the fund with the higher cost might also end up giving higher returns on the investment.Secondly ,in this competitive and aggressive market can a particular fund afford to have a huge difference in cost than its competitors? Thanks, Narayan"
- Narayan V., 19th July 2009, Sunday"good information"
- manojkumar yadav, 19th July 2009, Sunday"Interesting!"
- V.SESHADRI, 19th July 2009, Sunday"I feel Entry and Exit load on MFs have been removed by SEBI. Pls Check"
- Himanshu, 20th July 2009, Monday"If you say that MF have hidden costs then what about ULIPs.you know veryvell about the charges in ULIPs thats are fully hidden,but your site had add about ULIPs what is this???MF have Only 2% of load but ULIPs have 40% direct commission and near about 30-40% marcketing expences =80% commission tell me what is this????"
- Nafees Ahmad, 20th July 2009, Monday"Thanks for you such a good guide line befor investing in MF."
- DIVYESH UMRANIA, 20th July 2009, Monday"Hidden Costs in Mutual Funds....!!!"
- Parveen Dang, 20th July 2009, Monday"please tell me what is the real cost in open ended mutual fund and close ended fund."
- raj kumar chaurasia, 20th July 2009, Monday"When we ask investment experts about these hidden costs they say that no such hidden costs exist. Since none of these verbal promises and assurances regarding expected returns of the mutual funds is written and since mutual funds take the precaution to say that mutual fund investments are subjected to market risk when terrifying losses occur the ill-informed weak investor is left helpless and frustrated . "
- Dr. Amol Javdekar, 20th July 2009, Monday"Its was informative and very well illustratrated with a simple example but i think it should have been in a more elaborate manner"
- HARSHAD MISTRY, 20th July 2009, Monday"hi"
- SUNANDAN, 21st July 2009, Tuesday"What about all other expenses in the MF and whats the maximum they can charge during NFO and how it is comparative from ULIP plans."
- pankaj kumar gupta, 21st July 2009, Tuesday"recently entry load has been done away with..pls confirm"
- alka, 21st July 2009, Tuesday"can u send the details what are the real hidden cost that occurs in mutual fund that the fund managers tell while we are newly invest in mutual fund "
- Prakash, 21st July 2009, Tuesday"Good article.... but needed more clarity on expense ratio, how and when it is charged."
- Gurav Agarwal, 22nd July 2009, Wednesday"Worth Reading"
- Joseph, 22nd July 2009, Wednesday"Good Information"
- Jayyannth Deshmukkh, 25th July 2009, Saturday"Good Information"
- Jayyannth Deshmukkh, 25th July 2009, Saturday" "
- shaji, 28th July 2009, Tuesday"If this is true statement mutual fund co. should be transparent to customer"
- jugendra singh, 28th July 2009, Tuesday"good."
- Prabhdeep Singh Chana, 1st August 2009, Saturday"Read this and confirm me coz recently there was an announcement to abolish such cost from RBI....."
- hitesh.das@indusind.com, 6th August 2009, Thursday"Differentiate the open ended and clause ended MF and also suggest which one is best for investing. Also confirm the entry load charges and exit load charges have been removed by SEBI or not????"
- Ramesh Kumar Chaubey, 6th August 2009, Thursday"Its really good Article. As I am MBA student its beneficial for me.."
- dheeraj, 24th August 2009, Monday"for column"
- ak, 13th September 2009, Sunday"These r anyway known ? Am not going to becom yr customer? hence stop yr junk sms everyday. Who wud believe what all u state anyway? Why wud u want others to earn? Sorry offers thru net r not believed bye n not int in yr junk offers? u have no right to others names without yours? "
- rg, 4th November 2009, Wednesday"Kindly guide me about the hidden costs of Franklin Templeton funds,Reliance Funds ,Bajaj Life Insurance and Birla Sun Life (Freedom 58) funds."
- vijaya chandran, 18th July 2009, Saturday"Hi Mutual Fund Costs"
- Gururaj, 18th July 2009, Saturday"important and read "
- hari, 18th July 2009, Saturday"Diffeence between Open ended & Close ended Mutual fund"
- rajiv bhattacharjee, 18th July 2009, Saturday"can u send the details what are the real hidden cost that occurs in mutual fund that the fund managers tell while we are newly invest in mutual fund "
- srinivas.s, 18th July 2009, Saturday"informative article"
- nilesh, 18th July 2009, Saturday"Hi, It was wonderful reading through the article on hidden cost.However hows it it to be known what are the hidden cost of the fund also it might happen that the fund with the higher cost might also end up giving higher returns on the investment.Secondly ,in this competitive and aggressive market can a particular fund afford to have a huge difference in cost than its competitors? Thanks, Narayan"
- Narayan V., 19th July 2009, Sunday"good information"
- manojkumar yadav, 19th July 2009, Sunday"Interesting!"
- V.SESHADRI, 19th July 2009, Sunday"I feel Entry and Exit load on MFs have been removed by SEBI. Pls Check"
- Himanshu, 20th July 2009, Monday"If you say that MF have hidden costs then what about ULIPs.you know veryvell about the charges in ULIPs thats are fully hidden,but your site had add about ULIPs what is this???MF have Only 2% of load but ULIPs have 40% direct commission and near about 30-40% marcketing expences =80% commission tell me what is this????"
- Nafees Ahmad, 20th July 2009, Monday"Thanks for you such a good guide line befor investing in MF."
- DIVYESH UMRANIA, 20th July 2009, Monday"Hidden Costs in Mutual Funds....!!!"
- Parveen Dang, 20th July 2009, Monday"please tell me what is the real cost in open ended mutual fund and close ended fund."
- raj kumar chaurasia, 20th July 2009, Monday"When we ask investment experts about these hidden costs they say that no such hidden costs exist. Since none of these verbal promises and assurances regarding expected returns of the mutual funds is written and since mutual funds take the precaution to say that mutual fund investments are subjected to market risk when terrifying losses occur the ill-informed weak investor is left helpless and frustrated . "
- Dr. Amol Javdekar, 20th July 2009, Monday"Its was informative and very well illustratrated with a simple example but i think it should have been in a more elaborate manner"
- HARSHAD MISTRY, 20th July 2009, Monday"hi"
- SUNANDAN, 21st July 2009, Tuesday"What about all other expenses in the MF and whats the maximum they can charge during NFO and how it is comparative from ULIP plans."
- pankaj kumar gupta, 21st July 2009, Tuesday"recently entry load has been done away with..pls confirm"
- alka, 21st July 2009, Tuesday"can u send the details what are the real hidden cost that occurs in mutual fund that the fund managers tell while we are newly invest in mutual fund "
- Prakash, 21st July 2009, Tuesday"Good article.... but needed more clarity on expense ratio, how and when it is charged."
- Gurav Agarwal, 22nd July 2009, Wednesday"Worth Reading"
- Joseph, 22nd July 2009, Wednesday"Good Information"
- Jayyannth Deshmukkh, 25th July 2009, Saturday"Good Information"
- Jayyannth Deshmukkh, 25th July 2009, Saturday" "
- shaji, 28th July 2009, Tuesday"If this is true statement mutual fund co. should be transparent to customer"
- jugendra singh, 28th July 2009, Tuesday"good."
- Prabhdeep Singh Chana, 1st August 2009, Saturday"Read this and confirm me coz recently there was an announcement to abolish such cost from RBI....."
- hitesh.das@indusind.com, 6th August 2009, Thursday"Differentiate the open ended and clause ended MF and also suggest which one is best for investing. Also confirm the entry load charges and exit load charges have been removed by SEBI or not????"
- Ramesh Kumar Chaubey, 6th August 2009, Thursday"Its really good Article. As I am MBA student its beneficial for me.."
- dheeraj, 24th August 2009, Monday"for column"
- ak, 13th September 2009, Sunday"These r anyway known ? Am not going to becom yr customer? hence stop yr junk sms everyday. Who wud believe what all u state anyway? Why wud u want others to earn? Sorry offers thru net r not believed bye n not int in yr junk offers? u have no right to others names without yours? "
- rg, 4th November 2009, Wednesday"we would like to know about recent issue of AXIS BANK mutual fund nfo from investor's point of view.. regards V. G. SHUKLA"
- V. G. SHUKLA, 30th November 2009, Monday"pls sir "
- Krati, 11th December 2009, Friday"mutual funds hidden costs"
- sudhir, 4th July 2010, Sunday"it is fantastic about the hidden cost in the invest made through mutual fund"
- rajagopal, 26th August 2010, Thursday"Hidden costs in Reliance Gold. Kindly provide me details hidden expences."
- Nikhil Kothari, 8th March 2011, Tuesday"what you mean by Tax Deductions under Section 80C..."
- RE Levi, 12th April 2012, Thursday"You may need to correct PPF section in this article. Correction: The maximum investment that is allowed under PPF A/c has been increased from Rs.70000 to Rs.100000."
- Ashu Sethi, 16th April 2012, Monday"thanks "
- vaainoor kayamkhani, 20th April 2012, Friday"good information "
- vaainoor kayamkhani, 20th April 2012, Friday"good information "
- vaainoor kayamkhani, 20th April 2012, Friday"good information "
- vaainoor kayamkhani, 20th April 2012, Friday"please inform me can investments in post office RD IS elegieable for tax benefits under 80c"
- manian, 28th April 2012, Saturday"nice one"
- Sudheer, 2nd May 2012, Wednesday"Balappa j.Bhusari At/po. Shirahati kd Tq : Hukkeri Dt: Belgaum State : Karanataka"
- balappa bhusari, 1st May 2012, Tuesday"Can I Declare my mother's policy under 80C"
- Deepak, 9th May 2012, Wednesday"Infrastructure Bonds Infrastructure Bonds are popularly called as Infra Bonds. These are issued by infrastructure companies, and not the government. The amount that you invest in these bonds is also exempt from tax under Sec 80C If Infra Bond under Sec 80 C i.e. 1,00,000 , then what about of 20000/-"
- Ashis Chowdhury, 12th May 2012, Saturday"Nice article.It is refreshing to me."
- Rajesh K Tijare, 23rd May 2012, Wednesday"Nice article.It is refreshing to me."
- Rajesh K Tijare, 23rd May 2012, Wednesday"mutual fund exempted or taxable income."
- kavisudha, 19th June 2012, Tuesday"shildran fees deduction how many chldran deduction slab "
- rohit, 28th June 2012, Thursday"article is very informative"
- VINAYAK KESHAV DANI, 4th July 2012, Wednesday"We need to know your impression of polupar, day-to-day items. Our clients are willing to pay you five dollars or more for every survey you complete.We have 100s of studies that require your insight. Anyone can participate. So if you have some free time, and could use some extra money let us know what you think!"
- Ikram, 2nd August 2012, Thursday"We need to know your impression of polupar, day-to-day items. Our clients are willing to pay you five dollars or more for every survey you complete.We have 100s of studies that require your insight. Anyone can participate. So if you have some free time, and could use some extra money let us know what you think!"
- Ikram, 2nd August 2012, Thursday"excellent"
- sureshkumar k, 3rd August 2012, Friday"My Gross Income in a year is Rs.7,20,000/- per annum. How I can save 100% tax. Please advice."
- Chandan Mandal, 7th September 2012, Friday" I have taken SBI Life insurance policy with annual premium Rs 99000 in Dec 2012.Sum assured is Rs693000. How much deduction under Sec 80c is allowed?"
- I P S Anand, 2nd March 2013, Saturday" I have taken SBI Life insurance policy with annual premium Rs 99000 in Dec 2012.Sum assured is Rs693000. How much deduction under Sec 80c is allowed?"
- I P S Anand, 2nd March 2013, Saturday" I have taken SBI Life insurance policy with annual premium Rs 99000 in Dec 2012.Sum assured is Rs693000. How much deduction under Sec 80c is allowed?"
- I P S Anand, 2nd March 2013, Saturday
