The Tax on Income & Tax Savings

As we heading towards the end of financial year 2012-2013, there is no room for procrastination now. If you do not plan your taxes

Punch cartoon (1907); illustrates the unpopula...

now, you will end up paying a hefty sum.

As a late planner, you will not get the maximum benefits from tax-savings instruments due to the notional loss in investment, but you can minimize the damage. For most of the people “Tax-Saving” brings to mind life insurance, Equity-linked saving scheme, NSC etc. under section 80-C of the Income-Tax Act. An individual can claim tax deductions of upto Rs. 2 lakh under 80C.

There are quite a few options you can opt for tax savings:- Continue reading “The Tax on Income & Tax Savings”

Tax Planning: Few Investment Tips

As we heading towards the end of financial year 2012-2013, there is no room for procrastination now. If you do not plan your taxes now, you will end up paying a hefty sum.

taxsaveAs a late planner, you will not get the maximum benefits from tax-savings instruments due to the notional loss in investment, but you can minimize the damage. For most of the people “Tax-Saving” brings to mind life insurance, Equity-linked saving scheme, NSC etc. under section 80-C of the Income-Tax Act. An individual can claim tax deductions of upto Rs. 2 lakh under 80C.

There are quite a few options you can opt for tax savings:-

  1. Life Insurance Premiums.
  2. Contributions to Employees Provident Fund.
  3. Public Provident Fund.
  4. NSC (National Savings Certificates).
  5. Unit Linked Insurance Plan (ULIP).
  6. Repayment of Housing Loan (Principal). Continue reading “Tax Planning: Few Investment Tips”

To buy or not to buy Insurance policy ..Caveat Emptor

I did not intend to write on this  topic but in the last couple of days the cold calls from insurance agents provoked me . Few days back there is a very interesting column done in the mint on the insurance policies which die due to lapsation or the

product cost is too high.  Insurance in India is still a huge commission based business what is interesting the lapsation ration is on the high-rise from the data collected.

In insurance, customers return this product by either letting their policy lapse or by voluntarily surrendering their policy. Continue reading “To buy or not to buy Insurance policy ..Caveat Emptor”