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A STUDY ON INVESTMENT IN TAX SAVING SCHEMES BY THE SALARIED CLASS

Nidhi Jain
BMS III (SEM VI) Roll No: 108522 2010 2013 Batch

St. Francis College for Women, Begumpet, Hyderabad Dept. of Bachelor Management Studies April 2013

STUDENTS DECLARATION
I, Nidhi Jain of BMS, declare that this project titled, A study on investment in tax saving schemes by the salaried class has been done for the partial fulfillment of the degree of Bachelor Of Management Studies, St. Francis College For Women, Hyderabad. It is undertaken for academic purpose only. Whilst every effort has been made to ensure and sustain the accuracy of the information and sources of from where information is collected, the author does not guarantee such accuracy and in the similar manner the author does not accept any responsibility and will not be liable for any losses or damages arising directly, or indirectly, from the use of this document.

DATE: Signature of the Student Nidhi Jain

SUPERVISORS CERTIFICATE
This is to certify that the project work entitled A study on investment in tax saving schemes by the salaried class is a bonafide work carried out by Ms Nidhi Jain, student of BMS , St. Francis College for Women, Begumpet during the academic year 2011-12 in partial fulfillment for the award of the Degree of Bachelor of Management Studies. I hereby certify that the results embodied in this work have not been submitted to any other Institution or University for an award or diploma. This work has been done under my supervision.

DATE: Signature of the Project Guide Ms Mallika Shetty Lecturer, HOD Dept. of BMS

ACKNOWLEDGEMENT
I would like to express my gratitude to all the people, who extended unending support at all stages of the project. This report is a product of not only my sincere efforts but also the guidance and morale support given by the Faculties of Bachelor of Management Studies. I wish to express my sincere thanks to our principal Dr. Sr. Alphonsa Vattoly, and all my faculties of my college for providing the guidance and support. I express my sincere gratitude to my guide Ms. Mallika Shetty, HOD, BMS for sparing her valuable time in giving the valuable information and suggestions all through, for the successful completion of the project. I would like to acknowledge, my sincere thanks to my brother and family who have extended their helping hand in giving the information and being a part of the study. Last but not least, I express my sincere gratitude to all my friends who have directly or indirectly contributed to the successful completion of the project.

TABLE OF CONTENTS
S.No. Title Page Number
Chapter 1 1.1 1.2 1.3 1.4 1.5 Chapter 2 2.1 2.1 Chapter 3 Chapter 4 Introduction Research Problem Significance of the study Objectives of the study Methodology Scope of the Study Review of Literature Theoretical Background Citing of Past works Data analysis and Inferences Summary and Conclusion Points of conclusion Suggestions Annexure Webliography and Bibliography 1 2 2 3 3 4 5 5-13 14-15 16-46 47 47 48 I-V

LIST OF TABLES
Table No. 4.1 4.2 4.3 4.4 4.5 Table Name Age of Respondents Marital Status Income Group of Respondents Investment Preferences of Respondents Reasons for Investments Ranked By The Investors Page No. 17 18 19 21 25

LIST OF FIGURES
Figure No. 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 Figure Name Sex of Respondents Age of Respondents Respondents who believe in Saving Investment as a reason for Saving Tax Popularity of Tax Planning Investment in Schemes Under Section 80C Contribution towards Pension Fund under Section 80CCC Deductions Claimed For Health Insurance under Section 80D 4.9 Deductions Claimed For Medical Treatment of Dependent under Section 80DDB 4.10 Donation to Funds Eligible For Tax Benefit under Section 80G 4.11 Deduction Claimed Regarding House Rent under Section 80GG 4.12 Tax savings Annually 44 43 42 41 Page No. 16 17 20 26 28 37 39 40

LIST OF GRAPHS
Number 4.1 4.2 4.3 4.4 Title Marital Status Income Group of Respondents Investment Preferences of Respondents Page No. 18 19 21

Comparison between Marital status and preferred 22 investment avenues

4.5 4.6

Reasons for Investment

23

A Comparison between Respondents Gender and their 24 Reason for Investment

4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17

Importance of Tax Saving Assistance for Tax Planning Awareness of Deduction under section 80C Awareness of Deduction under section 80CCC Awareness of Deduction under section 80D Awareness of Deduction under section 80DD Awareness of Deduction under section 80DDB Awareness of Deduction under section 80G Awareness of Deduction under section 80GG Preferences in Different Schemes Under Section 80C

27 29 30 31 32 33 34 35 36 38

Comparison between the Annual Income and Tax 45 Savings of the Respondents

4.18

Attitude towards Tax Planning

46

Chapter 1
INTRODUCTION This study is done to assess the investment in tax saving schemes by the salaried class and the various investment avenues available to them with specific reference to tax planning. TAX In general, tax can be defined as a levy or other type of financial charge or fee imposed by state or central governments on legal entities or individuals. Local authorities like local governments, provincial governments, counties and municipal corporations also have the right to impose taxes. The rates, rules and regulations of taxation differ from one country to another and they are complex in character. Tax is a principal source of revenue for a countrys government. TAX PLANNING Tax planning is a strategy of minimizing tax liability for an individual or company by analyzing the tax implications of various options throughout a tax year. In other words, it is a practice of making adjustments so as to reduce ones tax liability to the least possible amount. Tax planning involves choosing a filing status, figuring out the most advantageous time to realize capital gains and losses, knowing when to accelerate deductions and postpone income and vice-versa, setting up a proper estate plan to reduce estate taxes, and other legitimate tax saving moves. SIGNIFICANCE OF TAX PLANNING Tax planning is very important criterion for investment as it helps to reduce the amount of tax paid by the tax payer. This leaves the tax payer with more income to spend. Therefore every tax payer plans his investments in such a way that his hard earned income is not taken away from him due to payment of heavy taxes.

INVESTMENT Investment or investing is a term with several closely related meanings in business management, finance and economics, related to savings or deferring consumptions. Investing is the active redirection of resources from being consumed today, to creating benefits in future; the use of assets to earn income or profits. In finance, it is the purchase of a financial product or other items of value with an expectation of favorable future returns, in general terms investment means the use of money in the hope of making more money. SOME INVESTMENT OPTIONS FOR TAX SAVING PURPOSE Bank Deposit Schemes PPF Accounts Life Insurance Health/Medical Insurance Mutual Funds

1.1. Research Problem Saving tax these days is the most important aspect for the salaried class people, so that they can save their hard earned income to spend on themselves and their family. There are many investment avenues which are most beneficial to the salaried class for their tax planning purpose, so to study those avenues is also very important. The Income tax Act also provide some sections as deductions, which can save tax and be proved as tax saving schemes implemented by the government. Now it is the need of hour that in this inflating period one should be highly aware of all the tax saving schemes to save money and enjoy their life with full satisfaction. 1.2. Significance Of The Study This study gives the various investment opportunities available. It is the brief study about the tax saving schemes available under section 80 of the Income Tax Act. It also gives the investment avenues which are most beneficial to the salaried class for their tax planning purpose.

It is inclusive of the study of the current investment patterns of the salaried class in the society and analyses the views of the salaried class on investment related to tax saving avenues.

1.3. Objectives Of The Study 1. To study the various investment avenues available specific to tax planning under Indian Income Tax Act. 2. To study the importance of tax saving among the salaried class people. 3. To study the awareness level among the salaried class about the tax saving schemes. 4. To ascertain the popularity of various avenues among the salaried class for tax planning. 5. To draw conclusions and suggestions.

1.4. Methodology Of The Study Both Primary and Secondary research has been carried out for this project 1.4.1 Sources of Data The Primary data are collected by way of distributing questionnaires to the salaried class respondents. The Secondary data is collected through various books, journals, articles and websites. 1.4.2 Sample Size A sample size of 50 respondents has been taken to carry out the research through the questionnaires developed to find out the awareness level about the tax saving investment schemes in the salaried class people. 1.4.3 Tools and Techniques of analysis Random sample methodology: In random sampling of a given size, all such subsets of the frame are given an equal probability. 1.4.4 Presentation of Data The collected data is analyzed and is represented through various charts, graphs, pie charts.

1.5. Scope Of The Study The scope of the study includes the various investment avenues with regard to tax planning. And the primary data is to the extent of the information divulged by the respondents.

Chapter 2 Review Of Literature


This chapter gives a clear understanding of the Investment, Taxation and Tax saving Instruments under Indian Income Tax Act, 1961. It also discusses the various deductions, and exemptions under Income Tax Act. It gives a clear understanding on the concept of investment in tax saving schemes. This chapter also gives the explanation of the first objective of the project i.e. to study the various investment avenues available with reference to tax planning under the Indian Income Tax Act, 1961. 2.1 Theoretical background INVESTMENT An asset or item that is purchased with the hope that it will generate income or appreciate in the future is called investment. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price. The building of a factory used to produce goods and the investment one makes by going to college or university is the examples of investment in economic sense. In the financial sense, investments include the purchase of bonds, stock and real estate property. An investment is the purchase of a financial vehicle with the intention of making a profit from it. Advantages of Investing Investing is the process of making your money work for you, instead of simply sitting safely in the back, and it is increasingly a necessity of modern life. It is frequently no longer possible for an individual to work in one job all their life and retire on their pension. People move from job to job, or from career to career, and due to government cutbacks the responsibility for providing for their retirement falls increasingly on the individual. By investing your money wisely you can make profit that you can then reinvest or put aside as a nest egg. A good return on an investment can maximize earning potential. The two main advantage of investment are: You can save money for your future. Your money grows at a good rate when compared to the inflation rate.

Disadvantages The major disadvantage of investing is that it is always possible to lose money on whatever investment you make. If you invest in a rare collectible, the value of it can rise or fall depending on its popularity and its availability on the market. Stock prices fluctuate based on everything from how the competition is doing to the public confidence in the market. The year 2008 demonstrated how even house prices, traditionally the most secure investment, dont have guaranteed return. Hence the only disadvantage of investment is that you may lose money if you choose high risk investment options. Apart from this there are no disadvantages of investment. TYPES OF INVESTMENT Investments can be broadly classified into two types, namely: 1. Financial instruments 2. Non-Financial instruments Financial instruments a. Equities: Equities are the type of security that represents the ownership in a company. Equities are traded in stock markets. Alternatively, they can be purchased via the Initial Public Offering (IPO) route. Investing in equities is a good long term investment option as the return on equities over a long time horizon are generally higher than most other investment avenues. However, along with the possibility of greater returns comes greater risk. b. Mutual Funds: A mutual funds allows a group of people to pool their money together and have it professionally managed, in keeping with the predetermined investment objective. The investment avenue is popular because of its cost-efficiency, risk diversification, professional management and sound regulation. One can invest as little as Rs 1000 per month in a mutual fund. There are various general and thematic mutual funds to choose from and the risk and return possibilities vary accordingly. c. Bonds: Bonds are fixed income instruments which are issued for the purpose of raising capital. Both private entities such as companies, financial institutions and the central and state government and other government institutions use this instrument as a means of garnering funds. Bonds issued by governments carry the lowest level of risk but could deliver a fair return. d. Deposits: Investing in bank or post-office deposits is a very common way of securing surplus funds. These instruments are at the low end of the risk return spectrum.

e. Cash Equivalents: These are relatively safe and highly liquid investment options. Treasury bills and money market funds are cash equivalents. Non financial instruments a. Real estate: With the ever-increasing cost of land, real estate has come up as a profitable investment proposition. b. Gold: The yellow metal is a preferred investment option, particularly when markets are volatile. Today, beyond physical gold, a number of products which derive their value from the price of gold are available for investment. These include gold futures and gold exchange traded funds. CHARACTERSTICS OF INVESTMENT The options for investing our savings are continually increasing, yet every single investment vehicle can be easily categorized according to three fundamental characteristics - safety, income, and growth- which also correspond to the type of investor objectives. While it is possible for an investor to have more than one of these objectives, the success of one must come at the expense of others. Lets examine these three types of objectives, the investments that are used to achieve them and the ways in which investors can incorporate them in devising a strategy. 1. Safety: Perhaps there is truth to the axiom that there is no such thing as a completely safe and secure investment. Yet we can get close to ultimate safety for our investment funds through the purchase of government issued securities in stable economic systems or through the purchase of the highest quality corporate bonds issued by economys top companies. Such securities are arguably the best means of preserving principal while receiving a specified rate of return. 2. Income: The safest investments are also the ones that are likely to have the lowest rate of income return, or yield. Investors must inevitably sacrifice a degree of safety if they want to increase their yields. This is the inverse relationship between safety and yield as yield increases, safety generally goes down, and vice-versa. 3. Growth of capital: Capital gains are entirely different from yield in that they are only realized when the security is sold for a price that is higher than the price at which it was originally purchased. Selling at a lower price is referred to as a capital loss. Therefore, investors seeking capital gains are likely not those who need a fixed ongoing source of investment returns from their portfolio, but rather those who seek the possibility of longer- term growth.

4. Marketabilty / Liquidity: Common stock is often considered the most liquid of investments, since can usually be sold within a day or two of the decision to sell. Bonds can also be fairly marketable, but some bonds are highly il-liquid, or non tradable possessing a fixed term. Similarly, money market instruments may only be redeemable at the precise date at which the fixed term ends. If an investor seeks liquidity, money market assets and non-tradable bonds arent likely to be held in his/her portfolio. 5. Tax minimization: An investor may pursue certain investments in order to adopt tax minimization as part of his /her investment strategy. A highly paid executive, for example, may want to seek investments with favorable tax treatment in order to lessen his or her overall income tax burden. Making contributions to an IRA or other tax-sheltered retirement plan can be an effective tax minimization strategy. CONCEPT OF TAX Tax can be defined as a levy or other type of a financial charge or fee imposed by state or central governments on legal entities or individuals. Local authorities like local governments, provincial governments, and municipal corporations also have the right to impose taxes. The rates, rules and regulations of taxation differ from one country to another and they are complex in character. Tax is a principal source of revenue for a countrys government. A countrys tax laws determine who should bear the tax burden and who should pay it. The tax rate is imposed as a certain percentage of the income earned. Taxation policies play an important role in the financial and economic development of a country. The default or partial payment of taxes attracts penalties. The penalties can be civil or criminal penalties. Tax Classification a. Indirect Tax: An indirect tax is a form of tax collected by mediators who transfer the taxes to government, and also perform functions associated with filing tax returns. The customers bear the final tax burden. Examples of indirect taxes are sales tax and Value Added Tax (VAT). b. Direct Tax: A direct tax is a form of tax collected directly by the government from the persons who bears the tax burden. Taxable individuals file tax returns directly to the government. Examples of direct taxes are corporate taxes, income taxes and transfer taxes.

Income Tax Slabs Summary of modified income tax slabs 2012-13 as per budget 2012 is as follows: For Individual tax payers, there is no tax for income below Rs 1.8 Lakhs. For Women tax payers, there is no tax for income below Rs 1.9 Lakhs. For Senior Citizens, there is no tax for income below Rs 2.50 Lakhs.

TAX PLANNING Systematic analysis of differing tax options aimed at the minimization of tax liability in current and future tax periods is called Tax planning. Whether to file jointly or separately, the timing of a sale of an asset, ascertaining over how many years to withdraw retirement funds, when to receive income, when to pay expenditures, the timing and amounts of gifts to be made, and estate planning are examples of tax planning. The tax implications of individual or business decisions throughout the year, with the goal of minimizing the tax liability and the exercises undertaken to minimize tax liability through the best use of all allowances, deductions, exclusions, exemptions, etc, is to reduce income and/or capital gains . In other words, it is the process of systematically making decisions with regard to their impact on taxation. There is need for salaried individuals to devote adequate time and effort to the tax planning exercise and be aware of the various benefits that they can avail of. DEDUCTIONS UNDER INCOME TAX ACT Indian tax laws contain certain provisions, which are intended to act as an incentive for achieving certain desirable socio-economic objectives. These provisions are contained in Chapter VI A and are in the form of deductions (80C to 80U) from the gross income. By reducing the chargeable income these provisions reduce the tax liability, increase the post-tax income and thus induce the tax payers to act in the desired manner. There are various kinds of deductions. Some of them are to encourage savings, some are for certain personal expenditure, a few are for socially desirable activities, and some are for economic growth. The first course of action while doing tax planning is to avail all the tax breaks related to expenses (Whether under section 80C or any other section such as 80E) before making any further investment commitments for tax saving under section 80. The various deductions available to an assessee under the Income Tax Act are as follows:

1. Deductions u/s 80C Section 80C of the Income Tax Act, 1961, sets out a number of options or tax saving instruments that are eligible for tax deduction. Broadly, we can divide tax saving avenues into two categories: first is expenditure related deductions such as tuition fees and home loan principal repayment; and second one is investment instruments or options such as: EPF (Employees provident fund) PPF (Public Provident Fund) VPF (Voluntary Provident Fund) NSC (National Savings Certificates) ULIPs (Unit-Linked Insurance Plan) ELSS (Equity Linked Saving Schemes) 5-Yr POTD (Post Office Time Deposit) 5-Yr Tax saving fixed deposits (FDs) of banks Mutual Funds Pension Plans Life Insurance Premium

Given below is a brief overview of various Tax saving avenues or options u/s 80C of the IT Act, 1961: 1. Expenditure avenues u/s 80C a. Tuition Fees: Expenses- only Tuition fees incurred on Childrens full time education in India are eligible for deduction under section 80C. No other charges or expenses are allowed. b. Repayment of principal sum of home loans: The EMI (Equated Monthly Installment) that is paid on home loan comprises of two components: Principal and interest. While principal part is deductible u/s 80C, there is a separate deduction for interest portion u/s 24(b) of IT Act. c. Expenses incurred on purchase of house property: Stamp duty, registration fees, and other expenses incurred for the purpose of purchase of house property are also entitled for section 80C deductions. 2. Investment options or avenues u/s 80C: Various investment options can be broadly divided into three categories: first is equity instruments, second are debt instruments, and third one is life insurance and pension plans.

Equity Instruments: a. Equity Linked Saving Schemes (ELSS): There are some mutual funds schemes specially created for tax savings, and these are called ELSS. The investments that you make in ELSS are eligible for deduction u/s 80C. Considered as the best section 80C option, its a mutual fund scheme investing entirely in equities and therefore has potential to deliver the best returns. Debt Instruments: b. Public Provident Fund (PPF): Among all the assured returns small saving schemes, PPF is one of the best. Current rate of interest is 8% tax free and the normal maturity period is 15 years. Minimum amount of contribution is Rs 500 and maximum is Rs 70000. A point worth noting is that interest rate is assured but not fixed. c. Employees Provident Fund (EPF): EPF is automatically deducted from the salary. Both the assessee and his employer contribute to it. While Employers contribution is exempt from tax, the assessees contribution (i.e., employees contribution) is counted towards section 80C investments. You also have the option to contribute additional amounts through VPF. Current rate of interest is 8.5% p.a. and is tax free. d. National Savings Certificates (NSC): NSC is a 6 year small savings instrument eligible for section 80C tax benefit. Rate of interest is eight per cent compounded half-yearly, i.e., the effective annual rate of interest is 8.16%. If you invest Rs.1000, it becomes Rs. 1601 after six years. The interest accrued every year is liable to tax (i.e., to be included in your taxable income) but the interest is also deemed to be reinvested and thus eligible for section 80C deduction. e. 5-yr Post Office Time Deposits (POTD) Scheme: POTDs are similar to bank deposits. Although available for varying time duration like one year, two year, three year and five year, only 5-yr post office time deposits- which currently offers 7.5% rate of interestqualifies for tax saving u/s 80C. The interest is entirely taxable. f. 5-yr Bank Fixed Deposits (FDs): Tax saving fixed deposits of scheduled banks with tenure of 5 years are also entitled for section 80C deduction. Life Insurance And Pension Plans g. Life Insurance: Any amount paid towards life insurance premium for the assessee or his family (spouse and children) is eligible for section 80C tax break. This is the most popular investment avenue among all the tax saving instruments but for all the wrong reasons.

h. Unit Linked Insurance Plans (ULIPs): Although ULIPs are covered under life insurance but still require a specific mention due to its popularity. Undoubtedly, better than traditional Insurance plans. ULIPs are considered as most complex financial products. They combine the features of both mutual funds and insurance. i. Mutual Fund Pension Plans: Another variable return instrument available under section 80C is pension plans of mutual funds. There are only two such plans available in the market- Templeton India Pension Plan (TIPP) and UTI Retirement Benefit Pension Plan (UTI-RBP). These are open ended debt oriented mutual fund schemes with a maximum exposure of 40% to equities. These are long term investments and premature break is very costly. j. Pension Plans Of Insurance Companies: Contribution towards pension plans offered by insurance companies qualifies for tax benefit u/s 80CCC instead of section 80C. However, the aggregate deduction allowed u/s 80C and section 80CCC cant exceed Rs One Lakh. There are basically two kinds of pension plans are offered by insurance companies: traditional pension plans which invest mostly in fixed income products and unit linked pension plans which are more flexible. 2. Health Insurance Premium Under Section 80D One can claim a deduction of Rs 15000 (Rs 20000 for senior citizens) u/s 80D for medical and health insurance-popularly known as mediclaim policy- premium paid on health of oneself, spouse and dependent children. Additionally a further deduction of Rs 15000 u/s 80D for buying health insurance policy for his parents (Rs. 20000 if either of his parents is a senior citizen) irrespective of whether they are dependent or not is also allowed. Part payment of premium is also eligible for deduction u/s 80D. For example suppose that his parents buy a health insurance policy having an annual premium of Rs 14000. Out of the total premium lets say his parents pay only Rs 5000 and the balance of Rs 9000 is paid by him. So, he will be allowed a tax deduction of Rs 9000 under section 80D and his parents will be allowed a deduction of Rs 5000.

3. Medical treatment of disabled dependent under section 80DD A fixed deduction of Rs 50000 (irrespective of the actual expenses) is also allowed u/s 80DD, if the assessee happens to incur any expenditure on the medical treatment (including nursing, training and rehabilitation) of handicapped dependent (spouse, children, parents, brothers and sisters). For severe disability, the amount of deduction available is Rs 100000.

Furthermore, section 80DD also allows deduction on insurance premium paid on certain specified life insurance policies. JEEVAN ADHAR policy of LIC qualifies for deduction u/s 80DD. 4. Medical treatment of certain specified ailments under section 80DDB one is also allowed a deduction of actual expenditure incurred- minus any amount reimbursed by employer or by an insurance company- up to Rs 40000 (Rs 60000 for senior citizens) for medical treatment of certain specified diseases and ailments (e.g. AIDS, Cancer, etc.) of himself or any of his dependent family members (spouse, children, parents, brother and sisters) under section 80DDB subject to certain conditions. 5. Educational loan under section 80E One is allowed a deduction u/s 80E for the repayment of loan taken (from any bank, financial institutions, or approved charitable institutions) for higher studies (full time studies including graduation of specified courses such as management, engineering, and medicine) for himself or any of his family members (children and spouse) and any vocational studies pursued after passing senior secondary examinations. However, the deduction u/s 80E is only on the interest portion and unlike home loans, deduction for principal repayment is not allowed. Finally the deduction u/s 80E is limited to a maximum period of 8 years. 6. Donations under section 80G Donations paid to specified institutions also qualify for tax deduction under section 80G but is subject to certain ceiling limits. Based on limits, we can broadly divide all eligible donations under section 80G into four categories: a. 100% deductions without any qualifying limit (e.g. Prime Ministers National Relief Fund). b. 50% deductions without any qualifying limit (e.g. Indira Gandhi Memorial Trust). c. 100% deductions subject to qualifying limit (e.g. an approved institution for promoting family planning). d. 50% deductions subject to qualifying limit (e.g. an approved institution for charitable purpose other than promoting family planning). The qualifying limit u/s 80G is 10% of the adjusted gross total income. 7. Rent paid under section 80GG If the assessee is either self employed or employed but not getting any HRA from his employer, one can get deduction under section 80GG for the rent paid by him. However, unlike HRA exemption under section 10(13A) of IT Act, here the maximum amount allowed is only Rs 2000 per month (Rs 24000 annually) and is also subject to certain conditions.

2.2 PAST CITINGS A number of studies have been conducted from time to time to understand the investment in tax saving schemes by salaried class people. However, most of them focused on tax planning and the deductions or exemptions for which salaried class people are eligible, so that they can reduce their tax liability. A review of important studies is presented below: Taxguru 1 (2011) In his article titled Tips to save income tax for salaried person aims at creating awareness about tax planning and he also gives some tips to save income tax for salaried person. In his article he talks about process one should start his tax planning. He says firstly to jot down your key financial objectives, the tentative time of money requirement and the corpus needed to achieve those goals. He says investments in tax saving tools are very effective to achieve financial objectives. There are range of avenues with different level of risk, return and liquidity. Choose an appropriate mix of investments to maintain an appropriate asset allocation and to help achieve the set financial objectives. He concluded his article by talking about the exemptions/ reimbursements and deductions under Income Tax Act, 1961, to maximize the tax saving.
2

Niraj Mahajan

(2012) In his article titled Tax Compliance and planning for salaried

Individuals aims at creating awareness amongst salaried employees about various tax compliance and possible tax planning over the years. His article also aims to provide solutions for tax savings, awareness of tax benefits and steps to be taken beforehand for tax planning. It also talk about Form 16 which is a certificate for TDS (Tax Deducted at Source) i.e. tax deducted on your salary by the employer and is deposited with the government on behalf of the employee. It also talks about the prime responsibility of the employer to furnish accurate details in Form 16, failure which attracts penalty to the employer. It also talks about various investment options available under section 80 to reduce tax liability. The article also explains the calculation of tax of an employee who switched his employment during a financial year, with an example. It thus concludes by talking about the benefits of submitting the returns online as the return gets processed quickly and thereby reducing your wait for refund amount.

Dr. Anil Menon

(2012) In his article titled Financial Planning aims at why financial

planning, time value of money, higher education for your children, insurance planning, tax planning, retirement planning and impacts of rising expenses. He said financial planning is very important to manage income and expenses, to create an awareness of your current financial status, to provide a system of evaluation and revision for financial progress and to plan for the future by developing goals and devising ways to achieve those goals. He also talks about why one should develop a financial plan. With his point of time value of money he want to say that today what we can afford is unaffordable tomorrow, worth today becomes worthless tomorrow. For tax planning he talks about all the exemptions, deductions and rebate which is used to minimize the tax liability. He ended up his article by talking about the cost of not planning taxes. He said one looses for long run by not planning taxes. He even focused on inflation and rising expense. His overall summary is done with an axiom manage the unplanned and minimize taxes. Shveta Sinha 4 (2012) In her article titled Tax saving instruments: Much more than saving taxes aims at One must realize that tax saving instruments do much more than only sav ing taxes. Smart planning with right tax saving instruments adds value to a portfolio. She also talks about the role of tax saving instruments in details explaining its tenure, liquidity level, tax rate, frequency of investment and their features. She explained tax planning in a step by step process, in which she says that a handpicked combination of tax saving instruments not only reduces tax liability of the individual but effectively contributes to meet various life goals. She ended up her article by saying that investments to save taxes are one of the commonest and yet one of the least well planned investments. She said that at the start of the career an individual usually starts his saving with tax saving instruments but without any plan. Once he starts to take his financial decisions randomly, it takes a long to come him back on right track. The duality of concerns, first tax and second investment, prevents investors to perfectly understand what they actually need. Smart planning with right tax saving instruments adds value to a portfolio. So take a wiser approach and avoid last minute rush for tax saving.

Chapter 3

DATA ANALYSIS AND INFERENCES


This chapter covers three major objectives of the study and helps to determine whether the investment done by the people in the tax saving schemes is dependent on the income of the buyer. It also examines the awareness level among the salaried class about the tax saving schemes, to understand the investment pattern of salaried class in tax saving options and to ascertain the popular avenues among the salaried class for tax planning. A survey was conducted for the salaried class people with the help of a structured questionnaire (Annexure I) and a sample of 50 respondents was collected for the survey. The main parameters were age, gender, income, investment of savings, reason for investment and awareness about the various deductions available for tax saving of the respondents. Following is the analysis and interpretation of data collected by administering questionnaires to a random sample of respondents belonging to the salaried class for the purpose of studying the topic, Investment in Tax saving schemes by the salaried class.

Figure 4.1

Female 44% Male 56%

*(source: fieldwork, (questionnaire)) From the above figure 4.1 it is clear that among the 100 respondents, 56% were males and 44% were females. As job is a synonym for males, the project targets majority of males.

Table 4.1
Age

Age group
Below 20 years 20 years to 30 years 30 years to 40 years 40 years to 50 years Above 50 years

Number of respondents 3 23 10 6 8 50 Figure 4.2

Total

16%

6% Below 20 years

12% 46% 20%

20 years to 30 years 30 years to 40 years 40 years to 50 years Above 50 years

*(source: fieldwork, (questionnaire)) The above figure 4.2 shows the age group of the respondents. The age group 20yrs 30yrs were majorly targeted as they are the young generation and future of the country. It is clear from the figure that most of the respondents are in the age-group 20-30 yrs (46%) followed by the age-group 30-40 yrs (20%), above 50 yrs (16%), and then the age-group 4050 yrs (12%) and the least respondents are in the age-group below 20 yrs (6%).

Table- 4.2 Marital Status


Marital status Number of respondents Male 18 10 28 Female 16 6 22 Total

Married Un married Total

34 16 50

*(source: fieldwork, (questionnaire))

Graph - 4.1 Marital Status

Female

Un married Married

Male

10

15

20

*(Source: fieldwork (Questionnaire)) The above graph 4.1 shows the gender and marital status of the respondents. Among the 22 females 16 were married and 6 were unmarried and among the 28 male respondents 18 of them were married and 10 were unmarried.

Table 4.3 Income Group Of The Respondents

Income group
Below Rs 1.5 Lakhs Rs 1.5 Lakhs to 5 Lakhs Rs 5 Lakhs to 10 Lakhs Rs 10 Lakhs and above

Number of respondents 3 19 19 9 50 Graph - 4.2

Total

Income Group Of Respondents


Below Rs 1.5 Lakhs Rs 5 Lakhs to 10 Lakhs 19 Rs 1.5 Lakhs to 5 Lakhs Rs 10 Lakhs and above 19

Below Rs 1.5 Lakhs

Rs 1.5 Lakhs to 5 Lakhs

Rs 5 Lakhs to 10 Lakhs

Rs 10 Lakhs and above

*(Source: fieldwork (Questionnaire)) Based on the above graph 4.2 it appears that maximum number of the respondents are in the income range of Rs 1.5 lakhs to 5 lakhs (38%) and Rs 5 lakhs to 10 lakhs (38%) followed by range of Rs 10 lakhs and above (18%) and the minimum number of respondents fall in the range below Rs 1.5 lakhs (6%).

Figure 4.3 Respondents Who Believe In Saving

Yes

No

8%

92%

*(Source: fieldwork (Questionnaire)) Based on the above figure 4.2 it appears that maximum respondents believe in saving (92%) and a few respondents dont believe in saving (8%).

Table 4.4 Investment Preferences Of The Respondents

INVESTMENT PREFERENCES Bank Deposits Mutual Funds Government Bonds Real Estate Gold and other precious metal Other Total

NUMBER OF RESPONDENTS 24 4 7 5 9

1 50

Graph - 4.3 Investment Preferences of Respondents


Number of respondents 24

7 4

9 5 1

Bank Deposits

Mutual Funds

Government Bonds

Real Estate

Gold and other precious metal

Other

*(Source: fieldwork (Questionnaire)) Based on the above graph 4.3 it appears that most of the respondents prefer to invest their savings in Bank Deposits (48%) followed y Gold and other precious metals (18%), Government bonds (14%), Real Estate (10%) and the least prefer to invest in any other avenues.

Graph- 4.4 A Comparison between the Marital Status and the Preferred Investment Avenues of Respondents.
40 35 30 25 20 15 10 5 0 Other Gold and other precious metal Real Estate Government Bonds Mutual Funds Bank Deposits Married 1 7 4 2 1 19 Unmarried 0 2 1 5 3 5

*(Source: fieldwork (Questionnaire)) Based on the above graph 4.4 we can infer that irrespective of the marital status of the respondents, the most preferred investment avenue is Bank Deposits (56% married and 31% unmarried), second preference for married respondents seen to be Gold and other precious metals (21%), followed by Real Estate (12%), Government Bonds (5%) and mutual funds (3%) and some other avenues (3%) are equally famous among the married respondents. Whereas the unmarried respondents seem to give equal preference to Bank Deposits (31%) and Government Bonds (31%), followed by mutual funds (19%), Gold and other precious metals (13%), Real estate (6%) and none of the unmarried prefers any other avenues (0%).

Graph- 4.5 Reason for Investment by the Respondents

Tax saving

25

Liquidity

31

Future family needs

22

Growth of capital

15

Assured stream of future income

19

Safety 0 5 10 15 20 25 30 35 40 45

45 50

*(Source: fieldwork (Questionnaire)) Based on the above graph 4.5 it appears that the reason for most of the respondents to invest is for Safety (90%) followed by Liquidity (62%), Tax Saving (50%), Future Family Needs (44%), Assured Stream of Future Income (38%) and the least seem to prefer Growth of Capital (30%).

Graph- 4.6 A Comparison between Respondents Gender and their Reason for Investment
100 90 80 70 60 50 40 30 20 10 0 Tax saving Liquidity Future Family needs Growth of Capital Assured stream of future income Safety Male 14 16 12 8 11 25 Female 11 15 10 7 8 20

*(Source: fieldwork (Questionnaire)) Based on the above graph 4.6 we can infer that the reason for investment for most of male and female respondents is safety, closely followed by males and females choosing liquidity, tax saving, future family needs, assured stream for future income and the least for Growth of Capital.

Table- 4.5 Reasons for Investments Ranked By The Investors Aspects Of Investment
LOW RISK HIGH RETURNS HIGH LIQUIDITY TAX MINIMIZATION HEDGE AGAINST INFLATION

Rank
1 2 3 4 5

*(Source: fieldwork (Questionnaire)) Most of the respondents have ranked Low Risk as the most important aspect influencing the choice of investment; they have ranked High Returns as the second important criterion; the third most important aspect is High Liquidity followed by Tax Minimization and the least important aspect influencing the choice of investment is Hedge against Inflation.

Figure 4.4 Investment as a reason for Saving Tax


Yes, I invest keeping in mind Tax Saving No, I don't invest keeping in mind Tax Saving

25%

75%

*(Source: fieldwork (Questionnaire)) Based on the above figure 4.3 it appears that maximum number of respondents invest keeping in mind their Tax Saving, that is 75% and a minimum number of respondents who invest without keeping in mind their Tax Saving i.e. 25%.

Graph- 4.7 Importance of Tax Saving

25 25

20

15 12

13

10

5 0 0 Very Important Important Slightly Important Not Important

*(Source: fieldwork (Questionnaire)) Based on the above graph 4.7 it appears that most of the respondents feel that Tax Planning is Important (50%), followed by respondents who feel that it is Slightly Important (26%) and Very Important (24%) and no one seem to feel that it is Not Important (0%).

Figure- 4.5 Popularity of Tax Planning


Yes, I Go For Tax Planning No, I Don't Go For Tax Planning

10%

90%

*(Source: fieldwork (Questionnaire)) Based on the above figure 4.3 it appears that maximum number of respondents goes for Tax Planning, that is 90% and a minimum number of respondents dont go for Tax Planning i.e. 10%.

Graph- 4.8 Assistance for tax Planning


Yourself Professional Advice Others 0 Help Of Friends Expert In Your Work Place Family Others

Expert In Your Work Place

10

Professional Advice

10

Family

Help Of Friends

Yourself

17

*(Source: fieldwork (Questionnaire)) Based on the above graph 4.8 it appears that most of the respondents do their Tax Planning All by Themselves (38%), followed by respondents who take help of the Professional Advice (22%) and the Expert in their Work Place (22%), Help of their Friends (14%), and a minimum number of respondents take help of their Family (4%) and none of the respondents take help of any other people (0%).

Graph- 4.9 Awareness of Deduction under Section 80C


44 45 40 35 30 25 20 15 10 5 0 Fully Aware Partly Aware Fully Aware Partly Aware Not Aware Not Aware 4 2

*(Source: fieldwork (Questionnaire)) Based on the above graph 4.9 we can interpret that maximum number of respondents is Fully Aware (88%) about the deductions under section 80C for tax saving purpose, around 8% are Partly Aware and 4% are totally Ignorant about it.

Graph- 4.10 Awareness of Deduction under Section 80CCC

34 35 30 25 20 15 10 5 0 Fully Aware Partly Aware Fully Aware Partly Aware Not Aware Not Aware 3 13

*(Source: fieldwork (Questionnaire)) Based on the above graph 4.10 we can interpret that maximum number of respondents is Partly Aware (68%) about the deductions under section 80C for tax saving purpose, around 26% are Fully Aware and 6% are totally Ignorant about it.

Graph- 4.11 Awareness of Deduction under Section 80D


25 25 20 15 10 5 0 Fully Aware Partly Aware Fully Aware Partly Aware Not Aware Not Aware 21

*(Source: fieldwork (Questionnaire)) Based on the above graph 4.11 we can interpret that maximum number of respondents is Fully Aware (50%) about the deductions under section 80C for tax saving purpose, around 42% are Partly Aware and 8% are totally Ignorant about it.

Graph- 4.12 Awareness of Deduction under Section 80DD

34 35 30 25 20 15 10 5 0 Fully Aware Partly Aware Fully Aware Partly Aware Not Aware Not Aware 8 8

*(Source: fieldwork (Questionnaire)) Based on the above graph 4.12 we can interpret that maximum number of respondents is Partly Aware (68%) about the deductions under section 80C for tax saving purpose, around 16% are Fully Aware and 16% are totally Ignorant about it.

Graph- 4.13 Awareness of Deduction under Section 80DDB

25

21

21

20

15 8 10

0 Fully Aware Partly Aware Fully Aware Partly Aware Not Aware Not Aware

*(Source: fieldwork (Questionnaire)) Based on the above graph 4.13 we can interpret that maximum number of respondents is Partly Aware (42%) and Ignorant (42%) about the deductions under section 80C for tax saving purpose, around 16% are Fully Aware.

Graph- 4.14 Awareness of Deduction under Section 80G

31 35 30 25 20 15 10 5 0 Fully Aware Partly Aware Fully Aware Partly Aware Not Aware Not Aware 4 15

*(Source: fieldwork (Questionnaire)) Based on the above graph 4.14 we can interpret that maximum number of respondents is Fully Aware (62%) about the deductions under section 80C for tax saving purpose, around 30% are Partly Aware and 8% are Ignorant of it.

Graph- 4.15 Awareness of Deduction under Section 80GG

29 30 25 20 15 7 10 5 0 Fully Aware Partly Aware Fully Aware Partly Aware Not Aware Not Aware

14

*(Source: fieldwork (Questionnaire)) Based on the above graph 4.15 we can interpret that maximum number of respondents is Partly Aware (42%) about the deductions under section 80C for tax saving purpose, around 14% are Fully Aware and 28% are Ignorant of it.

Figure- 4.6 Investment in Schemes Under Section 80C


Yes, I Invest No, I Don't Invest

4%

96%

*(Source: fieldwork (Questionnaire)) Based on the above figure 4.5 it appears that maximum (96%) respondents prefer to invest in the schemes eligible for deduction under section 80C and there is a very few (4%) respondents who does not invest in at least one of the scheme eligible for deduction under section 80C.

Graph- 4.16 Preference In Different Schemes Under Section 80C

Home Loan Repayment Tuition fees for children education Post office Time Deposits Mutual funds Equity Linked Savings Schemes Term Deposits with banks National Housing Bank LIC National Saving Certificates Unit Linked Insurance Plan Life Insurance Premium Public Provident Fund 4 4 1 2 14

16

26 18

20

40

41 23

*(Source: fieldwork (Questionnaire)) Based on the above graph 4.16 it appears that most of the respondents prefer to invest in Life Insurance Premium followed by LIC, Post office Time Deposits, Public Provident Fund, Term Deposits With Banks, Mutual Funds, Home Loan Repayment, Tuition Fees For Children Education, National Saving Certificates, Unit Linked Insurance Plan, Equity Linked Saving Schemes, and the least seem to prefer to invest in National Housing Bank.

Figure- 4.7 Contribution towards Pension Fund under Section 80CCC


Yes No

40%

60%

*(Source: fieldwork (Questionnaire)) Based on the above figure 4.6 it appears that a maximum number of respondents, i.e. 60%, contribute towards Pension Fund closely followed by the 40% of respondents who didnt contribute towards Pension Fund.

Figure- 4.8 Deductions Claimed For Health Insurance under Section 80D
Yes No

28%

72%

*(Source: fieldwork (Questionnaire)) Based on the above figure 4.7 it appears that a maximum number of respondents, i.e. 72%, claim deductions for Health Insurance u/s 80D and closely followed by the 28% of respondents who didnt claim such deduction.

Figure- 4.9 Deductions Claimed For Medical Treatment of Dependent under Section 80DDB
Yes No

16%

84%

*(Source: fieldwork (Questionnaire)) Based on the above figure 4.8 it appears that a maximum number of respondents, i.e. 84%, didnt claim deductions for Medical Treatment of Dependent u/s 80DDB and closely followed by the 16% of respondents who claim such deduction.

Figure- 4.10 Donation to Funds Eligible For Tax Benefit under Section 80G
Yes No

18%

82%

*(Source: fieldwork (Questionnaire)) Based on the above figure 4.9 it appears that a maximum number of respondents, i.e. 82%, prefer to donate to eligible funds for tax saving purpose u/s 80G and closely followed by the 18% of respondents didnt donate in such funds for tax saving.

Figure- 4.11 Deduction Claimed Regarding House Rent under Section 80GG
Yes No

30%

70%

*(Source: fieldwork (Questionnaire)) Based on the above figure 4.10 it appears that a maximum number of respondents, i.e. 70%, didnt claim deductions for House Rent for tax saving purpose u/s 80GG and closely followed by the 30% of respondents who claim such deductions for tax saving.

Figure- 4.12 Tax Savings Annually


Below Rs 50000 Rs 50000 to Rs 100000 Above Rs 100000

4%

30%

66%

*(Source: fieldwork (Questionnaire)) Based on the above figure 4.11 it appears that a majority of the respondents are able to save below Rs 50000 (66%) on their tax followed by between Rs 50000 to Rs 100000 (30%) and the least seem save above Rs 100000 (4%) on their tax.

Graph- 4.17 Comparison between the Annual Income and Tax Savings of the Respondents
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Below Rs 1.5 Lakhs 0 0 3 Rs 1.5 Lakhs to 5 Lakhs 0 5 14 Rs 5 Lakhs to 10 Lakhs 0 6 13 Rs 10 Lakhs and above 2 4 3

Above Rs 100000 Rs 50000 to Rs 100000 Below Rs 50000

*(Source: fieldwork (Questionnaire)) Based on the above graph 4.17 we can infer that out of the respondents with an income bracket of Below Rs 1.5 Lakhs all of them save below Rs 50000 (100%) on their tax, and most of the respondents with income bracket of Rs 1.5 Lakhs to 5 Lakhs seem to save below Rs 50000 (74%) and 26% of respondents save between Rs 50000 to Rs 100000, and most of the respondents with income bracket of Rs 5 Lakhs to 10 Lakhs seem to save below Rs 50000 (68%) and 32% of respondents save between Rs 50000 to Rs 100000, and most of the respondents with income bracket Rs 10 Lakhs and above seem to save between Rs 50000 to Rs 100000 (44%), followed by Below Rs 50000 (33%) and above Rs 100000 (23%) on their tax. From the above graph it can be inferred that as the income of the Respondents increases, their Tax savings also increases.

Graph- 4.18 Attitude towards Tax Planning

30 25 20

26

14 15 10 5 0 Strongly Agree Agree Neutral Disagree Strongly Disagree Strongly Disagree 7

Strongly Agree

Agree

Neutral

Disagree

*(Source: fieldwork (Questionnaire))

Based on the above graph 4.18 it appears that most of the respondents Agree (52%) that tax planning is a difficult task, while 28% are Neutral, 14% Strongly Agree, 4% Strongly Disagree and the least number of respondents Disagree (2%) with it.

Chapter 4 Summary & Conclusion


The question that is very crucial has been analyzed in this project -To study various investment avenues available for tax planning, study the awareness level among the salaried class about tax saving schemes, understand the investment pattern of salaried class in the tax saving options. Also, we understand the popular avenues among the salaried class for tax planning. Following are the conclusions drawn from the analysis of the data collected by administering the questionnaires to a random sample of respondents belonging to the salaried class. 90 % of the respondents believe in Savings and majority of them go in for Tax Planning to minimize their Tax liability. Maximum number of respondents among salaried class is undertaking the activity of tax planning. Most of them plan their taxes by themselves and others usually take the help of either the professionals or the expert in their work places. Most of the respondents felt that tax planning is an important criterion which should be considered while investing the income. The awareness about various deductions is up to the mark, i.e. 80C- most of the respondents are fully aware, 80CCC- most of the respondents are partly aware, 80Dmost of the respondents are fully aware, 80DD- most of the respondents are partly aware, 80DDB- most of the respondents are partly aware, 80G- most of the respondents are fully aware, 80GG- most of the respondents are partly aware. So we can say that the awareness level about the various deductions among the respondents is good. All the respondents are investing in the schemes eligible for deduction under section 80C, and the most preferred option is Life insurance premium followed by LIC, Post office time deposits, Mutual Funds and bank deposits. Around 50% of the respondents contribute towards pension fund eligible for deduction under section 80CCC. Around two-third of the respondents are claiming deductions regarding medical treatment of self as well as dependents u/s 80DDB, and health insurance u/s 80D. More than half of the respondents are claiming deductions u/s 80G regarding donation to the funds which are eligible for tax benefit.

Very few respondents are claiming deductions u/s 80GG regarding the payment of their house rent. Safety seems to be the most important reason for investment for both the genders and the male respondents are giving more importance to tax saving compared to female respondents, which can be due to the reason that male derive higher incomes than female or because female are getting a higher tax exemption compared to males, so requirement of tax planning is comparatively less.

Respondents with a good income are able to invest more in tax saving schemes and hence are able to save more when compared to the respondents with lower income group.

Most of the respondents felt that tax planning is a difficult task and therefore should be carefully done to save maximum. High returns and low risk are the most important criteria looked into while investing, tax minimization and high liquidity being the third most important.

Suggestions The government should take measures to make the procedures of availing deductions easier, so that people dont find tax planning to be a difficult task. Most of the respondents are planning their tax by themselves, they should take help of the professionals to plan their tax wisely and avail maximum benefits.

Annexure Questionnaire
Surveys objectives: The current questionnaire is intended to assess the awareness level among the salaried class about the tax saving schemes, their pattern of investment in tax saving options and the popular awareness for tax planning. Participant group: Salaried Class People 1.Name *

2.Sex *

Male Female 3.Age *

Below 20 years 20 years to 30 years 30 years to 40 years 40 years to 50 years Above 50 years 4.Profession *

5.Marital Status *

Married Unmarried 6.Income per annum *

Below Rs 1.5 Lakhs Rs 1.5 Lakhs to 5 Lakhs Rs 5 Lakhs to 10 Lakhs Rs 10 Lakhs and above 7.Do you believe in Saving? *

Yes No

8.Where do you prefer to invest your savings? *


Bank Deposits Mutual Funds Government Bonds Real Estate Gold and other precious metals Other: 9.What is your reason for investment? * Can choose more than one.

Safety Assured stream of future income Growth of capital Future family needs Liquidity Tax saving 10. When investing, what aspect of investment is most important to you and what is least? * High Priority High Returns Low risk High Liquidity Tax Minimization Hedge against Inflation 11. Do you invest keeping in mind your Tax saving? * Least Priority

Yes No

12. Is tax saving an essential criterion for investing? *


Very Important Important Slightly Important Not Important 13.Do you go in for Tax planning? *

Yes No 14.If yes, your tax planning is done by.

Yourself Help of Friends Family Professional Advice Expert in your work place Other: 15.Awareness about various tax saving schemes. * The given sections are the Tax saving schemes. Fully Aware Deductions Under section 80C Deductions Under section 80CCC Deductions Under section 80D Deductions Under section 80DD Deductions Under Partly Aware Not Aware

Fully Aware section 80DDB Deductions Under section 80G Deductions Under section 80GG

Partly Aware

Not Aware

16.Do you invest in schemes eligible for deductions under section 80C? *

Yes No 17.If yes, please tick in which avenues you invest. Can choose more than one.

Public Provident Fund Life Insurance Premium Unit Linked Insurance Plan National Saving Certificates LIC National Housing Bank Term Deposits with banks Equity Linked Savings Schemes Mutual funds Post office Time Deposits Tuition fees for children education Home Loan Repayment 18.Do you claim deductions under the following sections? * Yes Section 80CCC Section 80D Section 80DDB No

Yes Section 80G Section 80GG

No

19.How much do you save on your Tax annually *


Below Rs 50000 Rs 50000 to Rs 100000 Above Rs 100000 20.Tax planning is a very difficult task. *

Strongly Agree Agree Neutral Disagree Strongly Disagree


Submit

WEBLIOGRAPHY AND BIBLIOGRAPHY


1. http://taxguru.in/income-tax/tips-to-save-income-tax-for-salaried-person.html 2. http://taxguru.in/income-tax/tax-compliance-planning-salaried-individuals.html 3. Dr. Anil Menon, http://www.princetonacademy.co.in/seminar/advanced-excel-trainingcourses/tax planning 4. http://www.indiainfoline.com/PersonalFinance/Articles/Tax-saving-instruments-Muchmore-than-saving-taxes/39483829 5. www. Investorwords.com 6. www.tradechakra.com 7. www.business.mapsofindia.com 8. Taxmann, Introduction To Financial Planning, Indian Institute of Banking and Finance, Third Edition 2011 9. Macmillan, Financial Advising, Indian Institute of banking and Finance, First Edition 2010 10. ICSI, Executive Programme Study Material, Tax Laws, Edition 2011-12 11. Dr. V. K. Singhania, Income Tax, Edition 2012-13

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