Brand New Schemes for Tax Exemption

Reliance ETF for tax saving!

Reliance Mutual Fund has released a new scheme R*Shares CNX 100. Investments made in this scheme get tax exemption under Section 80 CCG (Rajiv Gandhi Equity Scheme) of Income Tax Act. This is an open-ended index exchange traded fund. The lock-in period in this scheme is 3 years. This fund will be invested in nearly 100 companies spread over around 38 different segments and therefore, it is a perfect diversified investment.

95 to 100 per cent of the funds will be invested in CNS indexed companies and 0.5 per cent in cash-related schemes. Investment in NFO can be up to rupees five thousand or any amount more than that. However, to get tax exemption, the maximum investment is Rs.50, 000, 50% of which i.e., Rs.25, 000 becomes eligible for tax exemption. Closing date of NFO is 15^th March 2013.To invest in this scheme, necessarily, one should hold DMAT account.

Jeevan Sugam – Single Premium Policy

Keeping in view the tax payers, Life Insurance Corporation of India (LIC) has introduced a single premium conventional policy Jeevan Sugam. It is available for a limited period and its term is 10 years. Insurance protection will be for an amount equal to ten times the premium paid. Persons aged between 8 and 45 years are eligible to take this policy. Minimum sum assured is Rs.60, 000; there is no maximum limit. Payment will be made with an addition of 3.5 per cent for sum assured more than Rs.1, 50,000 and 4.5 per cent for 4 lakhs and above. In case of happening of an undesirable event within 5 years, the sum assured will be paid and if it happens after 5 years, along with sum assured, loyalty additions also will be paid.