Why pay more taxes when there are various investment options available to save money. You need to plan your taxes wisely rather that avoiding Taxes. National Savings Certificate (NSC), Public Provident Fund (PPF), ELSS Schemes, Insurance policies, Infrastructure Bonds as regular investments u /s 80 C or if you want to save your capital Gains Tax from the sale of your property you can invest in Infrastructure Bonds. These are all a part of easy short cuts. But it is imperative to have a proper tax planning to make sure that the taxes aren’t eating away your return on investments, or you are suddenly not faced with a huge tax liability after the sale of your property.
Tax planning should be a part of overall financial planning and investment planning and one should look at post tax returns while doing investment planning. By suitable tax planning by an expert you can increase wealth creation significantly. Proper tax planning can reduce one’s tax burden significantly and can help in wealth creation. Tax planning is not only important for regular income, but can also help in reducing the tax burden on rental income and capital gains.
What are the various tax planning avenues available to a salaried individual?
1.Deductions u/s 80C of the income tax act
2.Deductions u/s 80D of the IT act
3.Deductions u/s 80DDE of the IT act
What are the instruments available under section 80C
1.ELSS schemes of various mutual funds
2.Insurance schemes from various insurance companies
3.Bank FDs for 5 years