Every individual wants to get some of the other types of tax benefit. For this, proper tax planning is very important. You need to plan for your taxes and think of making some fruitful investments so that you can avail tax saving advantages. You need to do good market research to find out the ideal way of getting tax benefits along with some prospects of earning a profit. If you make proper planning before the end of a financial year, you can not only reduce your tax liability but chances of your financial growth and prosperity also.
Strategic Tax Planning
Provisions and norms related to tax on changing. But still, it is regarded as the heftiest topic of discussion be it personal or corporate. Even though you don’t like to pay taxes, you cannot overlook it. fortunately, there are some tools and techniques that can be used efficiently to plan your tax-saving investment.
Best Tax Planning Tools
Undoubtedly public provident fund is the favorite investment scheme of people these days. Also, it has become an unbeatable leader when it comes to tax saving options. However, with the time many new tools and schemes have come into to market. These new tools have open new ways of saving taxes and getting benefits out of it.
Some of the leading text saving tools are listed below:
Public Provident Fund
Public provident fund is the favorite investment scheme of investors because, under this plan, you are eligible for a deduction of INR 1,00,000 subjected under section 80C of the income tax act. This scheme is also liked by the investors because of the maturity period, you need not pay any tax. The amount you invest in PPF is returned without interest. The minimum investment range is 500 per annum and the maximum investment range is 70,000 pa. The yield rate is 8% pa and Withdrawal can be made in the 7th financial year.
Equity Linked Savings Scheme (ELSS)
ELSS is not as old as PPF but it is becoming one of the most popular and lucrative tax saving instrument. It is a kind of direct mutual fund investment that comes with the option of tax-saving benefits. Although some risk elements are involved in this scheme, more and more investors are showing interest in this investment scheme because of its higher return. Also, it is becoming the most effective investment when it comes to controlling tax liability.
Insurance
One can also get some tax rebates by investing in life insurance saving schemes. You can choose to invest in a government-owned LIC plan or you can also choose to invest in any other private insurance companies like Birla Sun Life insurance, ICICI Prudential, Bajaj Allianz and so forth.
These are some of the common tax saving investment plans for investors. But make sure that every plan is not feasible for every investor so you must invest by keeping your risk profile and other requirements into mind.
Have a happy investment day!
