| Cut your tax liability by
20%, invest in the following schemes. |
Eligibility
Tax rebate under Section 88 is available
to an individual and HUF. The following are the investment schemes
eligible for rebate. Contribution or premium payments can be
in the name of or on the life of the assessee himself, the spouse
and any child of such assessee.
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Instruments
|
| Life
Insurance Premium – Life policy or endowment
policy, Children’s deferred endowment assurance
policy, non-commutable deferred annuity |
| Payment
made by Government employees to the Central
Government Employees Insurance Scheme, Maharashtra
State Government Employees Group Insurance
Scheme 1981. |
| Contribution to Frontier
Force Group Insurance Scheme |
| Contribution (not being
repayment of loan) towards statutory provident
fund, recognised provident fund, 15-year
public provident fund set up by the Government
and approved superannuation fund. |
| Any
sum deposited in a 10-year or 15-year account
under the Post Office Savings Bank (CTD)
Rules, 1959. |
| Subscription to National
Savings Scheme, 1992, National Savings Certificates,
VI (interest accrued is treated as amount
reinvested in these certificates) VII and
VIII issues |
| Contribution to unit-linked
insurance plan of Unit Trust of India and
LIC Mutual Fund (i.e,, Jeevan Dhara / Jeevan
Akshay) |
| Contribution (upto
Rs.10,000) to notified Equity Linked Savings
Scheme of a Mutual Fund (notified for the
purpose of section 10(23D)) or UTI – See
table below |
| Contribution to any notified
pension fund set up by a Mutual Fund (notified
for the purpose of section 10 (23D) or by
the UTI (i.e,, Retirement Benefit Unit Scheme
of UTI and Kothari Pioneer Pension Plan
set up by Kothari Pioneer Mutual Fund) |
| Any
sum paid as subscription to Home Loan Account
Scheme of the National Housing Bank (as
per the rule 14 of the Home Loan Account
Scheme, interest accrued is treated as reinvested
in the Home Loan Account) or notified pension
fund of the National Housing Bank. |
| Any
payment made towards the cost of purchase
or construction of new residential house
property. The deduction will be allowable
in respect of payments made upto Rs. 20,000
during the previous year for the purpose
of purchase or construction of residential
house |
Any
sum paid (w.e.f. assessment year 1992-93)
as subscription to a notified deposit scheme
(not being a scheme the interest on deposit
whereunder qualifies for deduction under
section 80L) of
- Public
sector companies engaged in providing
long-term finances for construction
or purchase of houses in India for residential
purposes; or
- any
authority constituted in India by or
under any law enacted either for the
purpose of dealing with and satisfying
the need for housing accommodation or
for the purpose of planning, development
or improvement of cities, towns, villages
or for both.
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Tax rebate allowed
For all the above investments, a
tax rebate of 20% is allowed upto a maximum of Rs 12,000/-
A further rebate of upto Rs 2,000/- may be claimed on further
investment up to Rs.10,000 in the shares, debentures or units
of infrastructure sector. Any amount invested in debentures
of and equity shares in, a public company engaged in infrastructure
including power sector and providing tele-communication services
or Units of a mutual fund referred to in Section 10(23D) and
approved by the Board.
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What is ELSS and which funds offer these schemes?
ELSS
stands for equity linked saving schemes. Under section 80CCB,
a deduction shall be allowed in the case of an assessee, being
an individual or a Hindu undivided family, in relation to
the investment made in the units of any plan, framed in accordance
with the Equity Linked Savings Scheme, of the Mutual Funds
specified under clause (23D) of section 10 or Unit Trust of
India. The deduction shall be allowed on so much of the amount
invested as does not exceed Rs. 10,000. When any amount in
respect of which deduction has been allowed is returned to
the assessee either by way of repurchase of the units by the
Fund or the Trust or on the termination of the plan, it will
be deemed to be his income for the previous year in which
the amount is returned. Further, where a Hindu undivided family
has effected a partition after a deduction has been allowed
to it on an amount invested in accordance with the Scheme,
such amount on its return shall be deemed to be the income
of the recipient. The difference between the repurchase price
of the units and the amount invested therein by the assessee
shall be deemed to be the capital gains and taxed accordingly.
Section 194F provides for deduction of tax at source at the
time of payment of any amount on account of the repurchase
of units or on the termination of the plan, at the rate of
20 per cent thereon.
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Mutual fund
schemes with tax rebate
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|
No.
|
Fund
Name
|
Scheme
Name
|
Launch
Dt.
|
Type
|
| 1 |
Alliance
|
Alliance
Capital Tax Relief 96 |
31-Mar-96 |
Open |
| 2 |
Birla
|
Birla
Equity Plan |
13-Feb-99 |
Open |
| 3 |
Birla
|
Birla
Taxplan 98 |
31-Mar-98 |
Open |
| 4 |
BOB |
BOBELSS
96 |
29-Dec-95 |
Open |
| 5 |
Canbank |
Canequity-Taxsaver
|
25-Feb-93 |
Open |
| 6 |
Zurich |
Zurich
India Tax Saver 96 |
31-Dec-96 |
Open |
| 7 |
Dundee |
Dundee
Taxsaver Fund |
25-Mar-00 |
Open |
| 8 |
UTI |
UTI
Equity Tax Saving Plan-00 |
15-Nov-99 |
Open |
| 9 |
UTI |
UTI
Unit Linked Insurance Plan(US) 1971 |
01-Oct-71 |
Open |
| 10 |
Escorts |
Escorts
Tax Plan-Growth |
31-Mar-00 |
Open |
| 11 |
Escorts |
Escorts
Tax Plan-Dividend |
31-Mar-00 |
Open |
| 12 |
HB |
Libra
Taxshield 96 |
01-Jan-96 |
Open |
| 13 |
HDFC |
HDFC
Tax Plan-2000-Growth |
27-Dec-00 |
Opne |
| 14 |
HDFC |
HDFC
Tax Plan-2000-Dividend |
27-Dec-00 |
Open |
| 15 |
Prudential
ICICI |
Prudential
ICICI Tax Plan-Growth |
20-Jul-99 |
Open |
| 16 |
Kothari
Pioneer |
Kothari
Taxshield-Dividend |
12-Apr-99 |
Open |
| 17 |
Kothari
Pioneer |
Kothari
Taxshield-Growth |
12-Apr-99 |
Open |
| 18 |
SBI |
Magnum
Tax Gain Scheme 93 |
24-Feb-93 |
Open |
| 19 |
Sundaram
Newton |
Sundaram
Taxsaver-Open |
20-Nov-99 |
Open |
| 20 |
Tata |
Tata
Tax Saving Fund |
01-Apr-96 |
Open |
| 21 |
Prudential
ICICI |
Prudential
ICICI Tax Plan-Dividend |
20-Jul-99 |
Open |
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