Best Tax saving Investment option in India

If you intend to Invest your money as well as Save tax, then here is your best option

Since last 3-4 years, Investment in ELSS has been proven itself to give the best returns as well as tax savings.

SBI Magnum Tax Gain Growth Fund, is considered best and biggest ELSS scheme. In last 3 years it has given returns of 170% which is more then any other investment options even other risky options. + Add your tax savings of 30% , the total benefit is 200% in 3 years. Even 100% benefit will be considered very high.

Tax savings: Many people do not focus on Tax savings and think that all the money they need to invest to get tax savings is loss of their savings, very long term investments (10-20 yrs) and the returs will be setoff significantly by the inflation.

But this is not true if you look at ELSS. ELSS has lock in period of 3 years only, the return on investment is extremely high and inflation is negligable amount.

Investment in LIC has 2 components Insurance component and Investment component. Your premium is partly used to provide insurance and partly invested on your behalf to give returns. Due to this your returns are not high. Also sometimes for focusing into returns you may end up selecting wrong insurance policy and its very confusing. I suggest to consider insurance saperate from the Investment.

Only take pure insurance policy form LIC or other Insurance provider like Term insurance + Whole life insurance (limited payment). Riders for disability may be considered.

I suggest all people to invest in ELSS schemes in India to save tax and get best returns on investments

For more Detail Visit Avdhoot Investment

Income tax of India

An income tax is a tax levied on the financial income of persons, corporations, or other legal entities. Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate tax, corporate income tax, or profit tax. Individual income taxes often tax the total income of the individual (with some deductions permitted), while corporate income taxes often tax net income (the difference between gross receipts, expenses, and additional write-offs).

Avdhoot Investment

Income tax collections in Delhi touches Rs 12,180 cr

Direct tax collections in the national capital have shown an unprecedented growth of 83.3 per cent and touched Rs 12,180.7 crore as on July 24 this fiscal, against Rs 6,646.2 crore a year ago.
"Looking at the growth of over 83 per cent in Direct Tax collections so far, we are certain to cross the target of Rs 64,590 crore in 2008-09," Delhi Chief Commissioner Income Tax Vijay Bhushan told reporters today.

Direct Tax collections, which include corporate and personal income tax, comprises Rs 8,090 crore tax deducted at source (TDS) mainly by the employers. TDS collection rose by 71.3 per cent over Rs 4,793 crore between April 1 and July 24, against Rs 4,793 crore during the corresponding period last fiscal.

He said to facilitate taxpayers in submiting their returns, 280 counters have been set in Delhi that would be manned by 1,300 officials of the department.

In places like Pragati Maidan, special counters would remain open till July 31, the last date of filing returns, to collect tax returns from taxpayers. Special arrangements have been made for senior citizens and women taxpayers, he said.

Over seven-to-eight lakh taxpayers are expected to submit their returns. Bhushan said taxpayers could also deposit taxes at the counters of Union Bank of India.

In addition, Bhushan said, the taxpayers could also electronically file their returns or deposit taxes.


However, in case of e-filing of returns without digital signatures, they would have to get acknowledgments forms stamped from the assessing officer concerned within 15 days otherwise their returns could be cancelled, he said.