Planning your taxes properly can help you save more for meeting your life dreams. Arihant's Tax Advisory assists you in choosing the right tax investment solution for you suited to your needs.

Section 80C and 80D covers ELSS, fixed deposits, health insurance, life insurance with each one offering various options while 54EC Bonds help you save capital gains arising from sale of an asset.

When it comes to making our tax saving investment, we leave this for the last hour or get lured into buying plans that are not suited to our needs. At Arihant we want to make sure that you make the right investment decisions even concerning your tax investments. We understand that selecting the right insurance plan or mutual fund scheme can be a confusing task. That's why we take the task in our hand wherein we understand your needs first and then recommend the best investment plan and scheme for you.

Scroll through to get an overview of the most popular tax saving investment avenues available for individual investors. Fill in the form on the right and our advisor will get in touch with you to help you plan your tax investments.

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Equity Linked Saving Scheme (ELSS)

(Section 80C)

An Equity Linked Savings Scheme (ELSS) is an open-ended equity mutual fund that offers the dual benefit of saving tax and growing your money. Investment of upto Rs 1.5 lacs in ELSS schemes qualify for tax exemptions under section (u/s) 80C of the Indian Income Tax Act, 1961 {please note that total exemption of all 80C approved investments should not exceed Rs 1.5 lacs}.

With mutual fund ELSS schemes, planning your tax saving investments becomes easier and convenient.

To invest in mutual fund ELSS scheme, fill in the form on this page and
our advisor will get in touch with you.

For more details on mutual fund investment, Click Here

Capital Gains Bonds: Save Long Term Capital Gain Tax

(Section 54EC)

Capital Gains Bonds are one of the best ways to save long term capital gains arising from sale of any asset. As per the Section 54 EC of Income Tax, 1961, you can get exemption from capital gain tax if the amount of capital gains are invested in capital gains bonds. Rural Electrification Corporation Limited (REC) & National Highways Authority of India (NHAI) are permitted to issues capital gains bonds under Section 54 EC.

Key Features of NHAI and REC 54EC Bonds:

  • Lock-in of 5 years.
  • Rated AAA by CRISIL, CARE and FITCH.
  • Offer capital gains exemption on a maximum investment of Rs 50 lacs (i.e. 500 bonds).
  • Interest earned on these bonds is taxable, however no TDS is deducted on interest.
  • Bonds automatically expire after 5 years
  • Current yield offered by both the bonds is 5.75% pa*.

Arihant is an official arranger of the 54EC Capital Gains Bonds in both NHAI and REC.

*Source: and Rates applicable for FY2018.


Get tax saving advice from experts on Arihant's Blog


Rajiv Gandhi Equity Savings Scheme

(Section 80CCG)


* Under the Rajiv Gandhi Equity Savings Scheme for new retail investors only

Rajiv Gandhi Equity Savings Scheme (RGESS) is a new equity tax saving scheme introduced for equity investors that aims to encourage flow of savings of the small investors in domestic capital market.

If you are a first time investor with a gross annual income of less than Rs 12 lakh then you can avail an additional deduction of up to Rs 25,000, over and above the Rs.1.5 lakh limit under section 80C, on an investment up to Rs 50,000 in the stock market. This comes u/s 80CCG of IT Act 1961.

Time and again history has proven that equity as an asset class gives the highest returns among all asset classes over the long term. So why not take advantage of this scheme and start investing in equity markets?

Key highlights of RGESS

Who can invest?

'New retail investor' who is a resident individual with an annual income of less than Rs 12 lacs can invest under RGESS. For full definition of 'new retail investor' please visit RGESS FAQ section.

Investment amount eligible for tax benefit:

An investment of up to Rs 50,000 in 'eligible securities' under RGESS qualifies for 50% tax deduction.

Tax benefit:

Savings of up to Rs 5,000 in taxes for investors falling under 20% tax slab. On an investment of Rs 50,000 in eligible securities, get a deduction of Rs 25,000 on taxable income. So investor falling in 20% tax slab saves Rs 5,000, i.e. 20% of Rs 25,000, in taxes.

Lock-in period:

1-year Fixed lock-in period when you cannot sell or pledge securities. Subsequent 2-years Flexible lock-in when you can sell and buy RGESS securities as per the terms and conditions laid down by RGESS.

RGESS in Snapshot

A. Invest Rs 50,000 in equities

B. Get 50% Tax Deduction u/s 80CCG - Rs 25,000

C. Tax Saving:

  • Rs 5,000 @20% tax slab
  • Rs 2,500 @10% tax slab


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How to invest under RGESS


Open a demat account with Arihant.


Designate this demat account as a RGESS account. If you have an existing demat account where you haven't traded, then designate that account as a RGESS account. You can use the Form A for this purpose.


Purchase eligible stocks, mutual funds or ETFs through one or more transactions across the financial year


Claim tax benefits under Section 80 CCG when you file your Income Tax returns


The investment made under RGESS is locked in for a total period of three years. However only the first year is a fixed lock-in. In the subsequent two years, the investment is subject to a flexible lock-in. During this flexible lock-in period the investor has a freedom to book profit or change the securities in her/his portfolio provided the value of securities in the demat account is maintained equal to the amount declared as investment under RGESS in the first year.


A new retail investor is any resident Individual with an annual income of less than Rs 12 lacs:

  • who is a resident individual (the benefit cannot be availed by HUF, corporate entities / trusts etc)
  • who has not opened a Demat account and has also not done any trading in the derivative segment till RGESS account opening date or the first day of the "initial year" in which he/she brings in the RGESS eligible investment into the account, whichever is later
  • who has opened a Demat account and has not made any transactions in equity and /or in the derivative segment till designating such account as RGESS or the first day of the "initial year" in which he brings in the RGESS eligible investment into the account, whichever is later

You save upto Rs 7,500 in taxes when you invest under RGESS (this is for investors falling under the tax slab of 30%). Under RGESS, you are eligible for a tax deduction on 50% of the amount invested and only investment amount upto Rs 50,000 will be eligible for availing tax benefits in RGESS.

Let us say, you invest Rs 50,000 under RGESS, the amount eligible for tax deduction from your income will be Rs 25,000. Alternatively, if you invest Rs 40,000 under RGESS, the amount eligible for tax deduction will be Rs 20,000. Hence the maximum deduction you can avail is of Rs 25,000 on an investment of Rs 50,000. So if you invest Rs 1 lac in eligible securities under RGESS, the amount eligible for tax deduction will still be Rs 25,000.

This deduction of Rs 25,000 is over and above limit of Rs 1.5 lac currently available u/s 80C of Income Tax Act.

  • Equity shares of companies which are included in either 'CNX-100' of NSE or BSE-100 or equities of public sector enterprises which are categorized as Maharatna, Navratna or Miniratna by the Central Government.
  • Exchange Traded Funds and Mutual Fund schemes with RGESS eligible securities as underlying (note Gold ETFs do not come under eligible securities).
  • Follow on public offer of BSE-100 or CNX-100 and public sector enterprises which are categorized as Maharatna, Navratna or Miniratna.
  • New fund offers of eligible mutual fund schemes.
  • IPOs of eligible public sector undertakings.

The consolidated and updated list of eligible securities from time to time is published on the websites of exchanges / Depositories / The Association of Mutual Funds in India (AMFI). For detailed information see at the relevant pages of the websites of SEBI, NSE, BSE, NSDL, CDSL and AMFI.

As regards eligible IPOs /FPOs/NFOs of mutual funds or ETFs, companies/mutual funds would be publishing this information in their offer documents / public advertisements.

Arihant offers investment service in RGESS schemes. Fill in the Request Callback Form or SMS <Arihant> to 56677

Disclaimer: Investors are cautioned that investments in stocks are subject to market risks. Investments decisions are the sole responsibility of the investor


In the name of tax saving and financial planning, life insurance is one of the most mis-sold products. Investors often fall prey to marketing tactics that result in investing in insurance policies that are not suitable for them. At Arihant, we offer insurance planning services, wherein we do not sell any insurance policy but help you select the best insurance policy for your needs. These also offer additional benefit of tax saving.

Life Insurance

(Section 80C)

Life insurance is a way for protecting your family dependent on you for financial support. Not all of us have huge wealth cornered for our family's needs. Therefore life insurance becomes a necessity because financial security of family is of utmost importance.

Arihant's Financial Planning Team will help you ascertain how much cover you need after doing a one-on-one discussion with you and analysing your income, expenses, assets and liabilities. Once this is done, our expert will select the best policy options for you to help you secure your family's future. An investment of upto Rs 1.5 lac in a life insurance policy is qualified for tax deduction under Section 80C of Income Tax Act.

For finding the best insurance policy suited for your needs, fill in the form on this page and our advisor will get in touch with you.

To learn more about our Financial Planning Service click here.

Health Insurance

(Section 80D)

Health Insurance is an absolute necessity for every individual – young or old. It protects you and your family against any financial contingency arising due to an unforeseen medical emergency. The soaring health costs can put a huge burden on you in case of an unforeseen event resulting in a gigantic dent on your savings. Therefore, a medical insurance makes complete sense.

We have saved the best part of buying health insurance for the last – it also helps in saving tax. As per section 80D of Income Tax Act, you can claim annual deduction on premium paid against health insurance for self, spouse and dependent children up to Rs 25,000 (Rs 30,000 for senior citizens) amounting to a tax saving of up to Rs 7,725* (Rs 9,270 for senior citizens). If you are paying the medical insurance premium for your parents, an additional deduction of Rs. 30,000 per year (if parents are sr. citizens) can be claimed under section 80D, which again results in tax saving of another Rs 9,270.

Arihant's Financial Planning Team analyses the various health insurance policies available in the market and identifies the best one that would offer the maximum insurance benefit without any frills and lowest premium.

Related Posts : Why Should I Take Health Insurance?

*As per IT applicable for FY2016-17 (high tax bracket).


A tax deduction is simply a provision provided by the government to help you reduce your taxable income by the amount of the deduction through different avenues. So by utilizing that particular deduction, you can reduce the amount of income tax by reducing the amount of your taxable income.

There are different tax deductions available to an individual under different Sections of the IT Act. Section 80C for example has a deduction limit of Rs. 1.5 lakh per annum. You can save tax by making use of the various deductions available to you under different sections of the IT Act i.e. investing in these instruments.

For example: If you have a total income of Rs. 7,50,000 for the financial year 2014-2015, and you invest Rs. 1,00,000 in PPF and Rs. 50,000 in Equity Linked Savings Schemes (ELSS), which are both 80C eligible investments, then as per Section 80C of Income Tax Act, your taxable income comes down to Rs 6 lakh after incorporating the deductions. Here's a look at how it works:

Particulars Without Tax Saving Investments u/s 80C With Tax Saving Investments u/s 80C
Gross Total Income Rs.7,50,000 Rs.7,50,000
Exemption u/s 80C Nil Rs.1,50,000
Total Taxable Income Rs.7,50,000 Rs.6,00,000
Tax on Total Income Rs.75,000 Rs.45,000
Tax saved Nil Rs.30,000

As per the Income Tax Section 80C the following investment or expesnes of upto Rs 1.5 lacs per annum is eligible for tax deduction:

Equity Instruments

a ) Equity Linked Savings Scheme (ELSS) of Mutual Funds

Debt Instruments:

b )Contributions to Employees Provident Fund (EPF) (mandatory)

c )Public Provident Fund (PPF)

d )National Savings Certificates (NSC)

e )5-Year Bank Fixed Deposit (FD)

f )Senior Citizens Saving Scheme (SCSS) (only senior citizens are eligible)

Insurance and Pension Plans

g )Unit Linked Insurance Plan (ULIP)

h )Life Insurance Premiums

i )Pension Funds: Insurance Companies and Mutual Funds


j )Repayment of Housing Loan (Principal)

k )Tuition Fees of Child in India

To find out which is the best tax saving investment for you, contact our investment advisor {fill the form provided on this page and our advisor will get in touch with you}.

Among all 80C approved investments only PPF and ELSS offer tax free returns.

Arihant's Financial Planning service offers comprehensive tax planning to individuals and corporate. For more details, fill in the Request a Callback Form and our advisor will get in touch with you.

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