Why is Tax planning important?
Tax planning is not only a basic duty of every
one of us but is also important for our own
financial planning. It helps you reduce your
income-tax liability and also ensure a better
future due to compulsory savings in highly safe
government approved schemes.
How do you calculate the tax ?
Calculate your taxable income under all heads
i.e., Income from salary, house property,
business & profession, capital gains and
income from other sources.
Calculate tax payable on the gross taxable
income for the whole financial year (i.e., from
1st April to 31st March) using a simple tax rate
table (we may provide a tax table link here).
Minimize your tax payable amount through
sensible tax planning by comparing and choosing
the best tax saving scheme based on your age,
social liabilities, tax slabs and personal
preferences.
You should choose you investment options in such
a way, that the post-tax yield is the highest
possible keeping in mind the basic parameters of
safety and liquidity.
Life insurance plans are effective way to save
taxes when doing your tax planning.