Tax Season is around the corner and Mr. Sharma is looking to maximise saving his tax payments. The Government of India offers relief from tax payments on certain amounts and certain investments, so that Mr. Sharma can create wealth over a period of time. He can choose from a wide range of various tax-free instruments up to a specified limit. Most of these tax-saving instruments are typically divided into three categories viz. EEE, EET and ETE investments, all of which work towards two goals; growing the capital and saving taxes. Since money is generally taxed at various investment stages, Mr....more

One of the most important life goals everyone has is the creation of wealth. This is only possible when one is young and employed. Post retirement, one has to typically live on the savings put away during the years of employment. These savings could be in the form of provident fund, pension and other investments, be it share market investments, fixed deposits, recurring deposits and so on. One such investment vehicle, which is also a great tax saver, is the National Pension Scheme. But what exactly is it? What is NPS? The National Pension Scheme or NPS is a social...more

The importance of buying health insurance cannot be understated. Your health insurance bails you out during medical emergencies. With a small annual premium, you end up saving lakhs of rupees that you would otherwise pay on hospitalization, surgeries, and medical reports and so on, if you did not have health insurance. Not only can you breathe a sigh of relief due to the insurance cover, you can also avail various concessions and tax benefits from investing in health insurance policies. Let’s find out how you can save on health insurance. Tax deductions Section 80 C of the Income Tax Act...more

59-year-old Mr. Batra is just a few short months away from retirement. He is looking forward to a time when he can relax and enjoy the fruits of his labour. An astute investor, Mr. Batra has religiously put away money in various investments. He has some mutual funds, fixed deposits, life and health insurance policies among other investments. As he is on the brink of retirement and entering the “senior citizen” category officially, he is determined to find out how he can save taxes as he enters this new tax bracket. He’s how Mr. Batra can save taxes as a...more

Smita is an employee at a bank. She was looking into different avenues to save tax as the financial year came to a close. She meticulously analyzed the different tax saving instruments and found out some instruments reduced her tax outgo and gave her additional income. Smita knew that investing in tax saving instruments, could help her reduce her taxable income, but what she did not consider was the taxability of the income earned from them. If you’re wondering how to save income tax, there are a whole range of investments that allow a deduction of taxable income, which help...more

How to save Income tax on Salary in India As tax season approaches, Kartik was looking at his tax burden and figuring out ways to save tax. He had exhausted the limit under Section 80C (investment in tax saving instruments), Section 80D (investment in health insurance), and taken the benefit of sections like 80G (donations) and 80TTA (deduction for savings account interest). However, his total tax payable was still quite high. He compared his tax burden with a colleague with a similar salary and was surprised to find his burden significantly lower. His colleague assured him it was only a bit...more

Abhay is a married man looking to build a corpus for his life goals, mainly his retirement and his children’s education. He wants to invest in the stock market, mainly because it gives excellent returns over the long run. However, with the change in the tax laws on capital gains, he is confused about the tax impact. Abhay is not the only one. Many investors stay out of the stock market because they’re not sure about taxation rules. However, the rules are simple and easy to follow. Gains on the stock market are also subject to tax. This includes gains...more

As tax season approaches, Kartik was looking at his tax burden and figuring out ways to save tax. He had exhausted the limit under Section 80C (investment in tax saving instruments), Section 80D (investment in health insurance), and taken the benefit of sections like 80G (donations) and 80TTA (deduction for savings account interest). However, his total tax payable was still quite high. He compared his tax burden with a colleague with a similar salary and was surprised to find his burden significantly lower. His colleague assured him it was only a bit of restructuring that had resulted in a lower...more

Aarti was looking at different ways to save tax as tax season approached. At a seminar that her company conducted, she learned that she could get a tax benefit for investing in a health insurance policy for herself and her family. Like many others, she only know about Section 80C for investment-linked deductions. In fact, there are several other sections which Aarti can use to save tax and benefit her family. A health insurance policy is one of the most important tools in a person’s life arsenal. With the cost of quality medical treatment rising, having adequate health insurance can...more