Tax Free Income and Investment Options For 2017

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Tax Free Income and Investment Options For 2015
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• Investors are always looking for options that
  generate tax-free income. The good news is that
  there are plenty of tax free investments
  insurance in India for investors.
• Listed below are tax free investments that meet a
  variety of needs and financial goals
• Life insurance
• Insurance helps individuals meet a variety of
  financial goals of the individual and his family.
  All types of life insurance plan including
  endowment, term, and money back qualify for tax
  benefits on entry and redemption.

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• Public Provident Fund (PPF)
• PPF is a government-sponsored savings and
  retirement planning investment. It is beneficial
  for individuals without a structured pension
  plan.
• The interest rate on the PPF is linked to the
  debt market. Money is locked in for a period of
  15 years, although partial withdrawals are
  permitted, the earliest one being after the sixth
  year. Redemption proceeds are tax-free in the
  hands of investors.

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• New Pension Scheme (NPS)
• Regulated by the Pension Funds Regulatory and
  Development Authority or the PFRDA, the New
  Pension Scheme (NPS) is specifically designed to
  help individuals save for retirement.
• Any citizen of India in the 18 60 years age
  bracket can participate in it. It is cost
  effective since fund management charges are low.
  Money is managed in three separate accounts
  having distinct asset profiles viz. Equity (E),
  Corporate bonds (C) and Government securities
  (G). Investors can choose to manage their
  portfolio actively (active choice) or passively
  (auto choice).
• Given the varied options, NPS is beneficial for
  individuals, with varying risk appetites, looking
  to set aside money towards retirement.

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• Pension
• Pension is a form of life insurance that provides
  for a different need. While protection plans
  (like term plans) are geared to financially
  secure the individuals family on death, pension
  plans aim at providing investment insurance for
  the individual and his family if he lives on.
• Maximum annual contribution Rs 1,50,000
• Tax benefit Under Section 80CCC
• The aggregate limit of deduction under all the
  sub-sections of Section 80C, like 80CCD, 80CCC
  cannot exceed Rs 1.5 lakhs.

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• Senior Citizens Saving Scheme (SCSS)
• The SCSS is a government-sponsored scheme to
  offer financial security to senior citizens.
  Individuals over 60 years of age are eligible to
  invest in the scheme. Investors can make a
  one-time deposit under subject to the minimum
  investment amount of Rs 1,000 and a maximum of Rs
  15 lakhs (in case of joint holding) and Rs 9
  lakhs (single). The lock-in is for 5 years
  offering a rate of interest of 9.3 p.a. payable
  on a quarterly basis with the interest being
  taxable in the year of accrual and subject to tax
  deduction at source.

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