The most important goal of taxpayer is to minimize his Tax Liability. In order to attain this objective, every taxpayer follows three methods; they are Tax Planning, Tax Avoidance and Tax Evasion. It is quite obvious, that Taxpayer never opts to pay maximum tax. So, he looks for the necessary arrangements in a manner to reduce tax. But the question arises, what method one should opts for whether Tax Planning, Tax Avoidance, Tax Evasion !
Tax Planning is required in order to avail exemptions, deductions and rebates provided in income tax Act. The Income Tax laws of India offer various methods for Tax Planning. Basically they are provided in the form of exemption. For availing all these benefits of exemptions, one should stick to true means by complying with the provisions of law in letter and in spirit. There is something more to tax planning than exemptions available on savings.
We at Fundzline help you pay the right amount of tax, not more and not less. With us you will also know how to your. After all, We ensure and properly plan you tax in such a way that your capital, incomes and gains remains tax proof and are more productive in your hand.
The government of India imposes an income tax on taxable income of all persons including individuals, Hindu Undivided Families (HUFs), Companies, Firms, Association of Persons, Body of Individuals, Local Authority and any other Artificial Judicial Person. Generally the tax is imposed on net profits from business, net gains, and other income.
The most popular tax-saving options available to individuals and HUFs in India are under Section 80C of the Income Tax Act, Section 80C includes various investments and expenses you can claim deductions on – up to the limit of Rs. 1.5 lakh in a financial year.
| INVESTMENTS | RETURNS | LOCK-IN PERIOD |
|---|---|---|
| ELSS Fund | 12%-14% | 3 years |
| National Pension Scheme (NPS) | 10%-12% | Till Retirement |
| Unit Linked Insurance Plan (ULIP) | Returns vary from plan to plan | 5 years |
| Endowment Insurance Plan | Returns vary from plan to plan | Duration varies from Plan to Plan |
| Bank FD’s | 5.50%-7% | 5 years |
| Term Insurance | Returns vary from plan to plan | Till Maturity of Plan |
Apart from the 80C deductions, there are various deductions under Section 80 you can use to save on income tax. Tax benefits on health insurance premiums and home loan interest are a few-
Interest paid on education loan is allowed as deduction under section 80E
An open ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit
Suitable for Investors with lock-in of at least 3 years with additional benefits of income tax saving.
Our Sincere Advice for Tax Payers:
* By Proper Tax Planning, one can reduce tax liability substantially.
* Try to use tax efficient investment avenues so that you should not be paying too much tax on their returns and plan for your needs accordingly.
* Start as early as possible in the month of april and use monthly investments to reduce risk. Don’t wait for last minute as it will be difficult on your pocket as well.
