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11 ways to save tax LEGALLY

Sanyam Mittal,   12 Sep , 2015  

easy tax saving

tax saving is not illegalsaving tax is awesomeIf you are reading this, you are likely to be someone whose income exceeds the threshold of ₹ 2.5 lakhs for paying tax. There are some legitimate ways of saving taxes and the good thing is that most of them also help you grow your wealth. These options usually have a lock in period and vary in the nature and amount of return they provide. You must also remember that each of these alternatives also serve specific purposes and tax saving is not the purpose but an ancillary benefit of that.

1. ELSS Tax Saving Mutual Funds

ELSS or Equity Linked Saving Schemes, are a kind of equity linked mutual funds.  As they invest in equity or stocks, ELSS funds have the ability to deliver superior returns – 14-16% over the long-term. That’s a full 6-8% above inflation.This return is not guaranteed though but historical evidence suggest that these returns are achievable over the long-term.

ELSS funds have a lock in period of only 3 years – the lowest among the options available. The return from ELSS funds is also tax-free. More…

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