Tax Saving
This varies from person to person. A person by investing in NSC saves on his tax. However, the interest on the investment is taxable. Again, if the investment is made in PPF, he is not liable to pay the income tax on interest. But the period of NSC is six years whereas in the case of PPF the period of repayment is 5 years. However, a portion can be claimed after 7years. Thus, the person who makes the investment has to consider whether he requires the amount after 5 years or he can wait for a longer period.
To make investments there should be savings. A lower income person also wants to save, but his gross income and day-to-day expenses don’t leave him anything to save. To increase savings, one should make investments that give reasonable returns. Again, this return becomes a saving if invested.
© Copyright 2023, All Rights Reserved with Juno Moneta Finserve Private Limited. Disclaimer | Disclosure | Privacy Policy
WhatsApp us