Best Investment Options – Tax saving Schemes in India for 2012

Overview

There are various tax saving schemes in India where a individual tax payer can invest and get benefit in income tax.  Currently for FY 2012-13, below are the income tax slabs.

Taxable amount (INR)

Tax

0 to 2,00,000

Zero tax

2,00,001 to 5,00,000

10% tax

5,00,001 to 10,00,000

20% tax

10,00,000 +

30% tax

However we see that an individual tax payer is in hurry to invest the money in one of the tax saving schemes and forget / ignores what kind of returns they are getting on the amount invested. In case we want to achieve the goal of being financially independent, it is important for us to invest in tax saving schemes which gives maximum returns.

Types of tax saving instruments available for investor/tax payer

Let us identify the tax saving instruments which give highest returns to an investor

Scheme

Time period (Years)

Expected returns per annum (%)

Minimum Investment (INR)

Maximum Investment (INR)

Ranking

Factors to be considered

Tax saving Mutual Funds

3 years minimum

7% to 17%

500

No limit

1

Depends on market conditions, identifying the best mutual fund is the key

Taxing saving Bank Fixed deposit

5

8% to 10%

Nil

100,000

2

identifying the best & safe bank FD is the key

Public Provident Fund

15

8.8%

500

100,000

3

Need to wait for longer period

National Saving Certificate

5

8.6%

100

No limit

4

 

Govt Tax saving bonds

6

8.0%

1,000

No limit

5

 

You got the list, but how to choose best tax saving scheme would give a maximum returns? It is not that easy to identify such cases. It depends on individual risk taking capacity, time period etc.,

Various Best Tax saving Mutual Funds – Returns are annualized

Scheme

Crisil Rank

Last 1 Year*

Last 2 Years*

Last 3 Years*

ICICI Pru Tax Plan

Rank-2

-4.0%

3.8%

16.8%

Can Rebocco Tax equity saver

Rank-1

0.2%

3.4%

15.4%

Religare tax plan

Rank-2

-5.3%

1.3%

14.5%

Reliance tax saver ELSS

Rank-2

0.5%

3.2%

14.3%

Fidelity tax advantage fund

Rank-1

-5.7%

0.6%

13.8%

* as of 30-Jun-12

Best Taxing saving Bank Fixed deposits

 

Bank Name

Scheme

Interest per annum

Tamilnadu Merchantile Bank

Tax Saver Scheme – 5 years to 10 Years

9.50%

Karnataka Bank

KBL – Tax Planner – 5 years

9.50%

United Bank of India

Tax Savings Deposit Scheme-5 years

9.35%

SBI

SBITSS-5 years

9.25%

Canara Bank

Canara tax saver-5 years

9.25%

Enjoyed your post ? Please give your valuble comment for us to improve the quality of the report.

 

Suresh

Myinvestmentideas.com

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