Save income tax,make money!!

Here's an interesting article I found somewhere on the internet. For those interested in saving tax,read on.

Don't we all like making money? Especially if our money grows in value even as we save tax?

Interested? Well, it's not too difficult. One of your options is investing in tax saving mutual funds (ELSS). Those of you who invested in ELSS funds last year must be pretty happy.

According to Value Research, a premier mutual fund research company, investing in certain ELSS funds would have seen the value of your money grow by more than 50 per cent in the last one year.

Simply put, if you had invested Rs 10,000 on June 21, 2006, it would have multiplied to more than Rs 15,000 by June 22, 2007.

What's more, an investment of Rs 1,00,000 in these funds under Section 80C would have been exempt from tax. This would have helped you save on your taxes as well as earn good returns on your investments.

This chart shows the top 10 tax saving mutual funds:

Open Ended - Equity: Tax Planning (one year return as on June 22, 2007)

Fund NAVs as on June 22, 2007 Returns (per cent)
Principal Tax Savings Rs 87.47 55.26
Principal Personal Tax Saver Rs 148.99 54.96
Birla Sun Life Tax Relief '96 Rs 101.92 53.86
Kotak Tax Saver Rs 16.30 53.56
Fidelity Tax Advantage Rs 14.05 52.00
Canequity-Tax Saver Rs 17.49 48.28
Magnum Taxgain Rs 47.53 47.70
Birla Equity Plan Rs 64.18 46.93
ING Vysya Tax Savings Rs 28.63 45.40
Franklin India Index Tax Rs 33.2 41.83