How can I invest 5 lakhs

How Much Should I Invest in a PPF Account to Save Rs.15,000 Income Tax?

I didn't save extra. If you want to open a PPF account then how much should I invest in PPF so that I can save the full RS 15000 tax.

You must invest Rs 1,50,000 in PPF [or any other instrument described in 80C for income tax] to save the Rs 15,000 in taxes.

I have declared to my company in the form of an investment declaration that I will invest Rs 1.5 lac in the form of a declaration. Is that important?

Generally NO. What is originally declared is used to deduct reasonable taxes. So if you declare more and invest less, there will be more tax deduction in January-March and it may be a cash flow issue. When you declare less and invest more; Less tax deducted in January-March.

To save just Rs 15,000 in taxes, I need to deposit 1.5 lacs into the PPF account 10 times, or I can just invest Rs 20,000 - 30,000 to save the full tax.

Is their ratio 1: 2 or 1: 3; ie to save Rs 1000 I have to invest 2 times or 3 times. Please help. I'm confused.

The 80C is deductible from your taxable income. So if you invest Rs 1,50,000 in PPF it will reduce your taxable income by that amount. So if you are in a 10% class you will need to invest Rs 1.50,000 to save a maximum of Rs / - 15,000. If you are in a 30% tax bracket, you will need to invest Rs 1.50,000 to save a maximum of Rs 45,000 / -.

Taxpayers 334

Hello ... thanks ... what if I only invest 50,000 rupees in a PPF account? In that case, how much tax can I save?


@ taxayer334 In your case it will be Rs 5000 / -. It will be Rs 4,00,000-Rs2,50,000 - [your investment 50,000]. The remainder of Rs 1,00,000 and the 10% tax is Rs 10,000.