Are you here for the masterstroke or the iPhone? Well, let’s get you the iPhone first.
The budget for 2016–2017 by the incumbent government states that anyone earning less than 2,50,000 doesn’t have to pay any taxes. Earn anything more, and you’re in the crosshairs of the taxman. Now, what if I told you that you could save some tax to fund your new iPhone!
An iPhone6 has a starting range of 33k and upwards. So the natural question is, will the government be taking that much in taxes? Well, at the highest tax bracket, you could lose as much as 30% of your income in taxes! We would like to show how you could save up to 45k in taxes, that itself will get you an iPhone 6s (here’s the link on Flipkart: https://goo.gl/rDKWnh)
PM Modi wants to increase the investment in the country. He travels abroad to woo foreign investors while domestically he uses tax incentives to woo Indian investors. He does this by using tax exemptions under section 80C. In short, you pay less tax, if you invest in some of these instruments listed under section 80C (including kids’ tuition fees!)
All you have to do is invest in Equity Linked Saving Scheme (ELSS). Don’t let this piece of jargon overwhelm you. Investing in this could fetch you a handsome return. Top ELSS funds have historically given above 20% annual returns. That’s almost triple of any interest you could receive from a fixed deposit. The fun doesn’t stop there, the money that you’ve invested and the interest are both tax-free!
Projections if you invest Rs.1.5L every year
Similarly, for Rs. 1L and 50k investment in these funds-
So not only do you save enough taxes to buy you a new iPhone, every year, but you also make your investments work harder to give you way higher returns than all the options available in the market right now. ULIP (Unit-Linked Insurance Plan), NSC (National Savings Certificate), PPF (Public Provident Fund), etc.
A word of caution, though, these investments are riskier than other investments. Think of it this way. On the one hand, you lose a chunk of your income in taxes. On the other hand, you make an investment using the same amount with some risk and a very high rate of return. Which one would you choose? I’ll let you decide!
To learn more, click HERE.
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*All returns are indicative basis past performance. Actual performance can vary.*