Personal Finance

Plan your Taxes Early

If you have just finished your tax-related investments in March, this article is for you. Often taxpayers postpone their taxes until March. Many end up blindly purchasing any tax-saving product, such as a unit-linked insurance plans or Guaranteed return Plans , without understanding their needs.

Some investors end up borrowing to invest due to inadequate funds in their savings account. The best thing for an investor to follow is to invest in tax-saving instruments from April. Salaries tend to shrink in January and February, as employers deduct taxes towards the year end.

Getting started with your tax planning early in the year will give you more time to examine various tax-saving options and identify the one that fits the bill in terms of your risk appetite and long-term as well as short-term goals.

Look beyond 80 C

Most employers offer health benefits to employees in the form of group mediclaim cover, up to a maximum of Rs 5 lakh. Hence, you may not feel the need for a standalone mediclaim. The need for this cover will be felt especially in case of a job loss, retirement or a job transition as the employer’s cover will lapse. One can opt for a family floater for dependents and benefit from lower premiums of up to 20%. Additionally, you save taxes up to Rs 15,000 if you cover your dependent .

Categories: Personal Finance

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