Tax Saving Investments Guide for 2018

Tax Saving Investments Guide for 2018:- March is the deadline to purchase and declare Tax Saving Investments for 2017-18. If you haven’t done Tax Preparation. let’s take a look at your options:-

Absolutes Essentials

Health and Life Insurance are absolute necessities for most families. They should be purchased, first and foremost, for financial protection. The tax benefits are secondary and should not be the sole reason for you to buy these. While buying either form of insurance, take time to do research and compare the various market offerings. You can do so online.If, after your purchase, you’re unhappy with the product, the IRDA mandates a 15day freelook period in which you can return your policy and get a refund.

Health Insurance

Section 80D of the income tax act offers a generous deduction of RS25000 for persons under 60 against premium paid for Health Insurance Plans. As healthcare costs inflate every year, it is absolutely essential that you have a cover of at least Rs 5 lakh.

Assuming that you are a 30years old married male with one child, you can buy a family floater cover for you, your wife and child for an annual premium starting RS7870.

Additionally, you can get a relief of RS 25000 for your parents under 60(Rs 30000, if above 60). Instead of being taxed on Rs 50000(at 30.9%, it is Rs 15450), you can spend it wisely on buying health insurance for yourself and your parents. For senior citizens, the new allowance is now a generous Rs 50000 from 2018-19.

ALSO READ:- 10 Ways To Make Money From Home


Buying life Insurance is a popular way to save tax under Section 80C. If you are a person with dependants, the first Life Insurance policy you should buy is a term plan. A cover worth 10-20 times your current annual income will support your family for the long term in the case of your sudden demise.

If you are a salaried, 30years old male with no bad habit and earn RS 500000 per annum, you can get a term insurance cover of Rs 1crore with a 30year tenure for a premium for a premium of RS 7500.


For saving tax under section 80C, we will list the four best instruments that are easy to manage and cover all kinds of investment requirement and risk appetites. You can divide your tax saving needs among these Investments to calibrate risks, returns, and liquidity.

  • Equity Linked Savings Schemes:- (ELSS) are diversified mutual funds and they are one of the most attractive options under Section 80C.
  • Public Provident Fund(PPF):- 

PPF remains the best tax saving and long-term investment option for the risk-averse. At present,PPF returns have come down to a paltry 7.6%.

  • Five Year Fixed Deposit:-is a quick fix tax saver that you can avail your self anytime, either through your bank or post office.Deposits in multiples of thousands up to Rs1.5 lakh can be claimed as deduction under Section 80C. If you have a net banking account, you can create this deposit sitting at home.
  • National Pension Scheme.

(NPS) allows you to save an additional Rs 50000 under section 80CCS(1B). The NPS is an instrument that allows you to create a pension fund while taking your collective exemption under 80c to Rs200000. Individuals between the ages of 18 and 65 can open an NPS Account and investments in both equity and debt. You can open an account online or via your NPS-participant bank.

Lastly to maximize your tax deductions, consider taking a home loan. At present, you can get deductions up to Rs 1.5 lakh per year towards principal repayment and Rs 2 lakh towards interest. Together, the saving of Rs 3.5 lakh towards interest. Together, the savings of Rs3.5 lakh would take care of tax-saving needs.

2 thoughts on “Tax Saving Investments Guide for 2018

  • February 24, 2018 at 11:36 am

    Nice article,keep up Google work

  • March 30, 2018 at 5:10 pm

    Only wanna remark that you hav a very deceent site, I love
    the style annd design it actually stands out.


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