As far as saving is concerned, earlier the start, better the miracle of interest compounding. The importance of saving cannot be overruled at any point of time. Make hay while the sun shines and the money saved is money earned hold true at all the time. The other reason that you should start saving early is that you will need to save less money.
As far as the investment from the income tax perspective is concerned, tax payer can invest -
Rs. 1 Lacs in the
PF/PPF/LIC/ELSS depending upon the returns and
risk appetite of the individual investor. The investment of Rs. 1 Lacs will be eligible for deduction u/s 80C. |
Rs. 15,000/- investment can be
done on the Mediclaim policy to have
deduction u/s 80D. |
Further, a new retail individual investor who has not opened a
demat
account and has not made any transaction in the derivative segment so far or who has opened a demat account but has not made any transaction in the equity segment or the derivative segment, can further have the benefit of deduction u/s 80CCG up to a maximum of Rs. 25,000/- on investment of Rs. 50,000/- The deduction is available only if the income of assessee doesn’t exceed Rs. 10 Lacs & the investment is done in “Eligible Securities”. |
