INFOGRAPHIC PRESENTATION

ITLP MTE PRESENTATION

INVESTMENT PLANS AND TAX BENEFITS UNDER SECTION 80C

BY: KANISHKA HANDA 2K19/BBA/43 KUMUDGARG 2K19/BBA/51

SECTION 80C- Deduction in respect of life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc.

Section- 80C Income Tax Act, 1961-2021

• Reduction of the taxable income
• Maximum deduction allowed is Rs.1.5 lakh
• Allows deduction for PPF, EPF, LIC , ELSS, NSC, etc.
• Benefit of this deduction can be availed by Individuals and HUFs.

It allows deduction for investment made in

6.Senior citizen savings scheme (SCSS)

1. PPF

2. EPF

7. tax saving FD for 5 years

3. Equity linked saving scheme

8. Infrastructure bonds

4. Sukanya samr-iddhi yojana (SSY)

5. National saving certificate (NSC)

ETC....

types of INVESTMENTS

stocks

A stock is a type of investment that represents an ownership share in a company. Investors buy stocks that they think will go up in value over time.

steps to invest in stocks

1. Open a Demat account
2. Sign in to the Demat account via the mobile-based application or web platform.
3. Pick a stock that you want to invest in.
4. Purchase the stock at its listed price and specify the number of units.
5. Once a seller reciprocates to that request, your purchase order will get executed.

Subtitle here

MUTUAL FUNDS

It is a type of financial vehicle made up of a pool of money collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets. Mutual funds are operated by professional money managers, who allocate the fund's assets and attempt to produce capital gains or income for the fund's investors

• Equity Linked Savings Scheme (ELSS) is the only Mutual Funds offer tax benefits under section 80C of the Income Tax Act As per this section, one can avail tax exemptions up to INR 1,50,000 by investing in ELSS funds.
• ELSS, also known as tax saving mutual funds, is a mutual fund with diversified portfolio. Fund manager of ELSS invests mainly in equity and stock related instruments having high risk and deliver high returns.

gold

GOLD MUTUAL FUNDS

GOLD

GOLD ETF

• the investor buys a proportionate ownership in the collective vault

• It involves the asset management and brokerage charges,
• no risk of theft
• Not affected by the stock market fluctuations

• The investment is made in the companies involved in mining the gold
• There's a charge involved for the management of the funds.
• no risk of theft.
• Affected by the stock market fluctuations

• Direct investment in physical gold

• only making charges

• borne the risk of theft or burglary

• Not affected by stock market fluctuations

bonds

A bond is a fixed-income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Owners of bonds are debtholders, or creditors, of the issuer.

how does bond work

1. one of the main asset classes that individual investors are usually familiar with, along with stocks (equities) and cash equivalents
2. When companies or other entities need to raise money to finance new projects, maintain ongoing operations, or refinance existing debts, they may issue bonds directly to investors
3. The borrower (issuer) issues a bond that includes the terms of the loan, interest payments that will be made, and the time at which the loaned funds (bond principal) must be paid back (maturity date). The interest payment (the coupon) is part of the return that bondholders earn for loaning their funds to the issuer. The interest rate that determines the payment is called the coupon rate.

fixed deposits

Tax-saving FDs are like regular fixed deposits but come with a lock-in period of 5 years and tax break under Section 80C on investments of up to Rs 1.5 lakh.

• Eligibility : Can be opened by Resident Indian individuals.
• Liquidity: Fixed Deposits have lock-in period of 5 years.
• Rate of Interest : FD interest rate across different banks ranges from 5.5% to 7.75%
• Investment Limit: Minimum investment limit is Rs 1000. Tax Treatment : Interest earned in taxable.

Thank you