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
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.