Proper tax planning can help to save the maximum tax.
Through prudent tax planning, you can not only minimize your tax liability and save taxes but also
achieve the following:-
Create wealth over long term through Capital Appreciation.
Provide Life Time Security to your loved ones.
Take care of sudden hospitalization/Medical expenses.
Provide for lifelong Pension.
Pay for your children’s education and other needs.
As an illustration of the above consider the following example:
A tax payer can save taxes by investing Rs. 1 Lakh in tax saving instruments per year.
Let us assume that he invests this amount regularly from the age of 30 to 60 years and further assuming
8% rate of return, this amount can grow to Rs. 1,13,28321. This is due to the magic of compounding.
Investment made for the Purpose of Tax Planning can have a significant impact on your finances over the long term and help you achieve your long term financial objectives
AVENUES OF TAX SAVING:
- Deduction u/s 80C
- PPF/DSOP
- TUTION FEES
- PRINCIPAL OF HOUSE LOAN
- LIFE INSURANCE
- ULIP'S
- ELSS
- FD'S
- NSC
- Investment in infrastructure Bonds
- Payment of Rent
- Medical Insurance for self, spouse, children or parents
- Interest paid on House Loan
- Education Loan taken for child's education
- Donations
SECTION 80U
When an individual himself is certified by medical authority to be suffering with Autism, Cerebral Palsy, Mental Retardation etc. a deduction up to Rs 1,00,000 can be claimed as deduction from Taxable Income.
SECTION 80DD
Expenditure incurred for Treatment of Dependent spouse, children, parents, brothers or sisters suffering from Autism, Cerebral Palsy, Mental retardation etc. a deduction up to Rs 50,000( Rs1,00,000for severe disability)
To know more, you are most welcome to contact us at BeeKay Associates. We shall advise you on the ideal mix of tax saving instruments on the basis of your age, social liabilities, tax slab, risk appetite etc.
