There are days when I introspect certain options on investing and was looking for areas where we can save tax or we don't pay tax at all. Am sure some options below may be known to all (e.g PPF etc), but just listing them down if it helps anyone like it helps me.
One doesn't pay tax in the following scenarios:
PPF
PPF comes under EEE and hence is exempt from tax.
The maturity amount is not taxable
EPF (Employee provident fund)
The above holds true for EPF also (if you withdraw after 5 years)
Dividends from Stocks
Dividends from stocks is also exempt from tax.
Note that the companies pay DDT (dividend distribution tax)on it.
LIC/Insurance
If your premium does not exceed 20% of the sum assured, the maturity proceed is tax free.
Savings account interest
Interest from your savings account (upto 10000) is tax free.
Note - Its all savings account combined.
Stocks/MF
If one keeps stocks/MF for more than a year, the proceeds are tax free.
One doesn't pay tax in the following scenarios:
PPF
PPF comes under EEE and hence is exempt from tax.
The maturity amount is not taxable
EPF (Employee provident fund)
The above holds true for EPF also (if you withdraw after 5 years)
Dividends from Stocks
Dividends from stocks is also exempt from tax.
Note that the companies pay DDT (dividend distribution tax)on it.
LIC/Insurance
If your premium does not exceed 20% of the sum assured, the maturity proceed is tax free.
Savings account interest
Interest from your savings account (upto 10000) is tax free.
Note - Its all savings account combined.
Stocks/MF
If one keeps stocks/MF for more than a year, the proceeds are tax free.
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