Public Provident Fund and Under Section 80c

Public Provident Fund is one of the most popular tax saving investment scheme of  Indian government. Deduction under section 80c and PPF relation is described in our budget. The duration of this scheme is 15 years, so basically it is a long term scheme. Public Provident Fund interest rate is just above 8.5% annually. The amount which is invested in PPF is also deductible under section 80c. You can make the deposit in lumpsum or in instalment in the year. The amount limitation in lumpsum is Rs 100000 and the instalment limit is 2 times in a year. This scheme is provided only for individuals. To open the account you can go SBI or any branch or any nationalized bank. 

TDS Rates

One has be sure of the Rates of TDS one is applying for deducting the Tax while making any payment. Rates of TDS must be referred from the income tax act to ensure that one is applying the correct rate. The information about TDS Rates has to be correct otherwise it is possible that the penal provisions of the act is attracted. Not only important is deducting TDS at correct rates but it is also important that the tds deducted is deposited correctly.
The tds deposited should be mentioned in the TDS return that one has to file after complying with the TDS provisions.

section 80c

deduction under section 80c is one of most searched topics on the internet. it gives details of deduction like provident fund, fixed deposits and nsc. if you are looking for all sort of investment details for the purpose of section 80c the visit http://www.section80c.in this will gives details of the eligible deductions under section 80c.

Know Your limit

The standard is 48 times your gross salary. Most nationalised banks offer only 85 per cent of the cost of the property. But there are banks that will offer you up to 100 per cent of the loan amount, provided you can show them that you have the capacity to repay.

But remember there is stamp duty, registration and other charges that will work out to around 10 per cent of the cost of the property. Take that into your calculations.

Compare home loans

Once you have selected the bank you want to do business with, sit down with its officials and get a pre-approval for the loan before committing on the property.

Banks will only disburse the loan after you have paid stamp duty and registration, and your share of the money.

Do not pour all your savings on the loan. Keep a buffer amount in the bank for emergencies. Remember you are committing for the long term a significant amount of your earnings to repaying the loan.

There is no harm in going for a longer tenure. If you get a pay hike or a bonus, you can always pre-pay your loan. This will bring down your tenure drastically.