Tips to save tax: Easy and Smart planning

Tax planning is an annual
exercise. Yet, we spend sleepless nights over it as we are ignorant of
effective tax planning techniques. Most of us do it in the end of financial
year. Result: We end up making investments we later regret. Given below are
tips for smarter tax planning:


1)
Start Early: It is best to start
planning at the beginning of the year. But if you are late, resort to quick-fix
tips as illustrated below.





2)
Know your tax liability: Based on
the tax slabs issued by the government as per tax norms for the financial year
2010, know your tax liability. http://buyigain.com/igain/igain/index.jsp





3)
Use
existing investments to avail of deductions: Existing investments, such
as contribution to the Employees' Provident Fund, repayment of housing loan and
premiums for life insurance and health insurance can be used for deductions
under various sections.Here is how you can save a tax emergency: http://www.bajajallianzlife.co.in/microsite/index.asp





4)
Infra bonds: With the announcement
of new tax slabs this year, infrastructure bonds are good propositions to invest
in. Apart from this, there are investment options like ULIPs and saving schemes
provided by investment and insurance players in the market.





5)
Insurance: Any average Indian would know insurance is
necessary and saves tax. If insurance is used as a tool to invest, it can give
you guaranteed and better returns on your investment. Insurance, for this financial year, will
prove as a brilliant investment option for women and working professionals as
they have custom made offerings from general insurance players in the market. http://buyigain.com/igain/igain/insurance_basics.jsp





6)
Get a Mediclaim: This is an area
which remains unutilised while tax planning and investment. Section 80D allows
you to invest in a health insurance plan to avail a deduction up to Rs. 15,000.
Your tax exemption can be capped upto 20,000 for parents who are senior
citizens.

It is very important for us to have a Mediclaim as, Future Generally is a group that gives you perfect mediclaim at a very short money and it will provide you with the information that can be beneficial for you.

Thanks

Investing in mutual funds is one of the best ways.but in terms of tax saving I would recommend you to go for Tax saver funds.There are many companies in India offers tax saver funds but the one I would recommend is DSP BlackRock, because it's a CRISIL Mutual Fund award wining compnay in India.

So be a part of such trustworthy & secure company.