Kolkata based IT professional Silver Basu has a very friendly income. If her employer contributes to the New Pension System on her behalf then her tax can come down to nearly Rs. 7,000. Up to 10% of the basic salary put into the NPS is tax deductible under Sec 80CCD(2d).
The other way that she can be saving tax is by Sec 80CCD(1b). She needs to reduce her PPF investment to 1 Lakh and put the remaining amount in the NPS. This will help her to save tax by Rs 10,300.
Before she commits any money to the NPS, she should remember that after turning 60 the NPS will get locked. She even needs to contribute every year at least 6,000 in her NPS account. There will be a penalty if she fails every year.
She requires to make drastic changes in her tax planning investments. Five months ago, she was sold a Ulip is a low cost product and its short term period is of 5 years, which will not allow her to make any money. If suddenly she stops paying the premium then the money which she has already put in the policy will be returned back only after 5 years with a 4% return.
Tax Assist is a professional income tax consultancy in India for both corporate houses and individual tax payers; the latter comprising Salaried Individuals, Seafarers, Professionals and Non Resident Indians.
With the help of Tax Assist and its team of income tax professionals, taxpayers can minimize their Income Tax liability, maximize their net income and create opportunities to save for current and future needs while maintaining proper accounting standards and income tax returns which are compliant with the Law.
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