1. Tax Saving Options

2. Agenda Options available for Tax Saving Investments ELSS schemes Tax Saving Bonds

3. –Upto Rs. 1.50 Lac of investment u/s 80 C is deductible from your taxable income –Options u/s 80 C PRINCIPAL on Home Loan FD for 5 years Insurance Premium PPF Investment in ELSS schemes Section 80 C

4. Are You One of Those Who Still Go for Traditional Instruments like Bank F.D. and PPF? OR Smart Enough to Take Dual Advantage of Better Returns and Tax Benefit by Investing in ELSS.

5. Does PPF Sound a better Idea with Revised interest rates @ 8.60% ??

6. PPF Investment is for 15 Years Lets have a look at ELSS and PPF performance for 15 years

7. Look Who Has Made More Profit? Returns as on 31.12.11 ELSS investments have delivered 3 times more returns than PPF even in the most challenging times Investment of Rs. 70,000 made in PPF and bouquet of ELSS schemes every year from 1997 to 2011 on 1 Jan every year Current Valuation

8. ELSS Performance Scorecard

9. Multiple Tax benefits under ELSS Investments Income Tax Exemption Investment upto Rs. 1.50 Lac is deductible from Taxable Income Capital Gains Tax Long Term Capital Gains are tax exempt Dividend Distribution Tax Dividends declared by ELSS schemes are Tax Free. Enjoy Tax fee dividends

10. But Equity Markets have Not delivered any returns for Past 4 years!!!

11. Best time to invest in Equities is NOW!!! - Markets are down ~25% from Jan 2008 This represents a large price correction and a long time correction of 4 years - Marekts have been impacted by - High fiscal deficits / high interest rates - European crisis - Corruption cases / slow pace of reforms - Weak FII flows - PE's based on March 2013 earnings are ~12x This effectively means markets are currently available at half valuations from 2008 peak - Markets seem to be discounting most negatives

12. How to Earn More from Equities - Equity prices and returns are volatile in short to medium periods - In the long term, however, returns from equities are surprisingly predicatable Equity Returns = Earnings Growth + Dividends - Whenever past performance from Equities is less than earnings growth, future returns should be more and vice versa - Given the low returns of last 5 years and the Low PE multiples, returns over next 5 years should be a combination of Earnings growth and PE expansion * In 1992 PE's were ~over 40 times and inspite -ve 5 year returns, PE's in 1997 were still around 25 times. Currently PE are 12 times based on March 2013 Earnings

13. How to Earn More from Equities Good investments are made in bad times Risk to your returns from NOT INVESTING in Equity is much higher than risk to your returns by Investing into Equity

14. Tax Saving through Infrastructure Bonds

15. Rs. 20,000 investment in Infrastructure Bonds deductible from taxable income u/s 80 CCF Bonds have a Lock in period of 5 years and are avaiable for 10 and 15 year duration Bonds can be issued in Demat or Physical Mode Tax Saving upto Rs. 6,180 in Infrastructure Bonds The interest from the Bonds is Taxable Infrastructure Bonds

16. Your Total Tax Saving with ELSS and Infra Bonds Your earning Tax without ELSS & Infra Bonds Tax with ELSS & Infra Bonds You save 250,0007,2100 400,00022,66010,30012,360 500,00032,96020,60012,360 800,00094,76070,04024,720 1,500,0003,11,0602,73,98037,080 Amount in Rs. Based on Tax Slab for FY 11-12 Assuming an investment of Rs. 100,000 in ELSS and Rs. 20,000 in Infrastructure Bonds in this Financial Year for male below 60 year age

17. IDFC Ltd (AAA Rated) L & T Finance Ltd (AA+ rated) Power Finance Corporation (AAA rated) Tranche - 2 of L&T Bonds closing on 11 Feb and Tranche - 2 IDFC Bonds closing on 25 Feb Bond Issuers Ratings by ICRA

18. Take Wise decision Save Taxes by Investing In ELSS & Infra Bonds