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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
SUPERVISOR’S 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
Introduction
Research Problem
Significance of the study
Objectives of the study
Methodology
Scope of the Study
1
2
2
3
3
4
Chapter 2
2.1
2.1
Review of Literature
Theoretical Background
Citing of Past works
5
5-13
14-15
Chapter 3 Data analysis and Inferences 16-46
Chapter 4 Summary and Conclusion
Points of conclusion
Suggestions
47
47
48
Annexure
Webliography and Bibliography
I-V
LIST OF TABLES
Table No. Table Name Page No.
4.1 Age of Respondents 17
4.2 Marital Status 18
4.3 Income Group of Respondents 19
4.4 Investment Preferences of Respondents 21
4.5 Reasons for Investments Ranked By The Investors 25
LIST OF FIGURES
Figure No. Figure Name Page No.
4.1 Sex of Respondents 16
4.2 Age of Respondents 17
4.3 Respondents who believe in Saving 20
4.4 Investment as a reason for Saving Tax 26
4.5 Popularity of Tax Planning 28
4.6 Investment in Schemes Under Section 80C 37
4.7 Contribution towards Pension Fund under Section 80CCC 39
4.8 Deductions Claimed For Health Insurance under Section
80D
40
4.9 Deductions Claimed For Medical Treatment of Dependent
under Section 80DDB
41
4.10 Donation to Funds Eligible For Tax Benefit under Section
80G
42
4.11 Deduction Claimed Regarding House Rent under Section
80GG
43
4.12 Tax savings Annually 44
LIST OF GRAPHS
Number Title Page No.
4.1 Marital Status 18
4.2 Income Group of Respondents 19
4.3 Investment Preferences of Respondents 21
4.4 Comparison between Marital status and preferred
investment avenues
22
4.5 Reasons for Investment 23
4.6 A Comparison between Respondent’s Gender and their
Reason for Investment
24
4.7 Importance of Tax Saving 27
4.8 Assistance for Tax Planning 29
4.9 Awareness of Deduction under section 80C 30
4.10 Awareness of Deduction under section 80CCC 31
4.11 Awareness of Deduction under section 80D 32
4.12 Awareness of Deduction under section 80DD 33
4.13 Awareness of Deduction under section 80DDB 34
4.14 Awareness of Deduction under section 80G 35
4.15 Awareness of Deduction under section 80GG 36
4.16 Preferences in Different Schemes Under Section 80C 38
4.17 Comparison between the Annual Income and Tax
Savings of the Respondents
45
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
country’s 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 one’s 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,
don’t 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. Let’s 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 economy’s 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 aren’t 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 country’s government. A
country’s 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 (Employee’s 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 Children’s 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, it’s 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 Employer’s contribution is
exempt from tax, the assessee’s contribution (i.e., employee’s 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 interest-
qualifies 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 can’t 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 let’s 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 Minister’s 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.
Niraj Mahajan 2 (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 3 (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 saving
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
Male 56%
Female44%
Chart Title
*(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
Figure 4.2
6%
46%
20%
12%
16%
Below 20 years20 years to 30 years30 years to 40 years40 years to 50 yearsAbove 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 40-
50 yrs (12%) and the least respondents are in the age-group below 20 yrs (6%).
Table- 4.2
Marital Status
Age group Number of respondents
Below 20 years 3
20 years to 30 years 2330 years to 40 years 1040 years to 50 years 6Above 50 years 8
Total 50
Marital status Number of respondents Total
Male Female Married 18 16 34
Un married 10 6 16
Total 28 22 50
*(source: fieldwork, (questionnaire))
Graph - 4.1
Marital Status
Male
Female
0 2 4 6 8 10 12 14 16 18 20
Un marriedMarried
*(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
Graph - 4.2
Income Group Of Respondents
Below Rs 1.5 Lakhs Rs 1.5 Lakhs to 5 Lakhs Rs 5 Lakhs to 10 Lakhs Rs 10 Lakhs and above
3
19 19
9
Number of respondents
*(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
Income group Number of respondents
Below Rs 1.5 Lakhs 3
Rs 1.5 Lakhs to 5 Lakhs 19Rs 5 Lakhs to 10 Lakhs 19Rs 10 Lakhs and above 9
Total 50
Respondents Who Believe In Saving
92%
8%
Yes No
*(Source: fieldwork (Questionnaire))
Based on the above figure 4.2 it appears that maximum respondents believe in saving (92%)
and a few respondents don’t believe in saving (8%).
Table 4.4
Investment Preferences Of The Respondents
Graph - 4.3
Investment Preferences of Respondents
Bank Deposits Mutual Funds Government Bonds
Real Estate Gold and other precious metal
Other
24
4
75
9
1
Number of respondents
*(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.
INVESTMENT
PREFERENCES
NUMBER OF
RESPONDENTS
Bank Deposits 24
Mutual Funds 4
Government Bonds 7
Real Estate 5
Gold and other
precious metal
9
Other 1
Total 50
Graph- 4.4
A Comparison between the Marital Status and the Preferred Investment Avenues of Respondents.
Married Unmarried
Bank Deposits 19 5
Mutual Funds 1 3
Government Bonds 2 5
Real Estate 4 1
Gold and other precious metal 7 2
Other 1 0
2.5
7.5
12.5
17.5
22.5
27.5
32.5
37.5
*(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
Safety
Assured stream of future income
Growth of capital
Future family needs
Liquidity
Tax saving
0 5 10 15 20 25 30 35 40 45 50
45
19
15
22
31
25
*(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 Respondent’s Gender and their Reason for Investment
Male Female
Safety 25 20
Assured stream of future income 11 8
Growth of Capital 8 7
Future Family needs 12 10
Liquidity 16 15
Tax saving 14 11
5152535455565758595
*(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 Rank
LOW RISK 1
HIGH RETURNS 2
HIGH LIQUIDITY 3
TAX MINIMIZATION 4
HEDGE AGAINST INFLATION 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
75%
25%
Yes, I invest keeping in mind Tax Saving No, I don't invest keeping in mind Tax Saving
*(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
Very Important Important Slightly Important Not Important0
5
10
15
20
25
12
25
13
0
*(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
90%
10%
Yes, I Go For Tax Planning No, I Don't Go For Tax Planning
*(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 don’t go for Tax Planning i.e.
10%.
Graph- 4.8
Assistance for tax Planning
Yourself
Help Of Friends
Family
Professional Advice
Expert In Your Work Place
Others
17
6
2
10
10
0
Respondents
*(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
Fully Aware Partly Aware Not Aware0
5
10
15
20
25
30
35
40
45
44
42
Awareness Level
*(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
Fully Aware Partly Aware Not Aware0
5
10
15
20
25
30
35
13
34
3
Awareness level
*(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
Fully Aware Partly Aware Not Aware0
5
10
15
20
25
25
21
4
Awareness Level
*(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
Fully Aware Partly Aware Not Aware0
5
10
15
20
25
30
35
8
34
8
Awareness Level
*(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
Fully Aware Partly Aware Not Aware0
5
10
15
20
25
8
21 21
Awareness Level
*(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
Fully Aware Partly Aware Not Aware0
5
10
15
20
25
30
3531
15
4
Awareness Level
*(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
Fully Aware Partly Aware Not Aware0
5
10
15
20
25
30
7
29
14
Awareness Level
*(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
96%
4%
Yes, I Invest No, I Don't Invest
*(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
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
23
41
4
4
40
1
20
2
18
26
14
16
*(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
60%
40%
Yes No
*(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 didn’t
contribute towards Pension Fund.
Figure- 4.8
Deductions Claimed For Health Insurance under Section 80D
72%
28%
Yes No
*(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 didn’t claim such deduction.
Figure- 4.9
Deductions Claimed For Medical Treatment of Dependent under Section
80DDB
16%
84%
Yes No
*(Source: fieldwork (Questionnaire))
Based on the above figure 4.8 it appears that a maximum number of respondents, i.e. 84%,
didn’t 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
82%
18%
Yes No
*(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 didn’t donate in such funds for tax saving.
Figure- 4.11
Deduction Claimed Regarding House Rent under Section 80GG
30%
70%
Yes No
*(Source: fieldwork (Questionnaire))
Based on the above figure 4.10 it appears that a maximum number of respondents, i.e. 70%,
didn’t 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
66%
30%
4%
Below Rs 50000 Rs 50000 to Rs 100000 Above Rs 100000
*(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
Below Rs 1.5 Lakhs Rs 1.5 Lakhs to 5 Lakhs
Rs 5 Lakhs to 10 Lakhs Rs 10 Lakhs and above
Below Rs 50000
3 14 13 3
Rs 50000 to Rs 100000
0 5 6 4
Above Rs 100000
0 0 0 2
5%15%25%35%45%55%65%75%85%95%
*(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
Strongly Agree Agree Neutral Disagree Strongly Disagree0
5
10
15
20
25
30
7
26
14
1 2
Column1
*(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, 80D-
most 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 don’t 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
Survey’s 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 People1.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 Least Priority
High Returns
Low risk
High Liquidity
Tax Minimization
Hedge against Inflation
11. Do you invest keeping in mind your Tax saving? *
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 Partly Aware Not Aware
Deductions Under section 80C
Deductions Under section 80CCC
Deductions Under section 80D
Deductions Under section 80DD
Fully Aware Partly Aware Not Aware
Deductions Under section 80DDB
Deductions Under section 80G
Deductions Under section 80GG
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 No
Section 80CCC
Section 80D
Yes No
Section 80DDB
Section 80G
Section 80GG
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-training-
courses/tax planning
4. http://www.indiainfoline.com/PersonalFinance/Articles/Tax-saving-instruments-Much-
more-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