Rashid has earned a profit of two lakhs in his business. Give him two suggestions for investment
for next five years so that he gets the tax rebate. Justify your answer.
Answers
Answer:
The most prominent duty sparing alternatives accessible to people and HUFs in India are under Section 80C of the Income Tax Act. Area 80C incorporates different ventures and costs you can guarantee derivations on – up to the furthest reaches of Rs. 1.5 lakh in a money related year.
He can do these things
Purchase Medical Insurance and guarantee a reasoning up to Rs. 25,000 (Rs 50,000 for Senior Citizens) for therapeutic protection premium .
Guarantee conclusion upto Rs 50,000 on home credit enthusiasm under Section 80EE .
A home advance would likewise help you in lessening your assessable salary as the chief segment of home credit can be guaranteed under Section 80C upto Rs 1.5 lakh and the intrigue bit can be asserted as a derivation from pay from house property.