by manish pandye
Published Fri, Apr 28th 2017, 17:37 | Finance
Financial planning will help you attain your financial goals in the long run be it short term or long term financial goals. Tax savings plan are important because taxes are large expenses which you have to incur. Reducing taxes is an important part of your financial planning process. While choosing tax savings instruments, cover all the parameters like returns, security, flexibility, cost, transparency and ease on the investments made. You must align a higher investment plan for optimum returns. One needs to discuss the tax plan with the financial planner in order to save money. A person can save up to Rs 1.5 lakh with tax saving plans. Although you earn short term benefits by paying lower tax you might earn large profits in the long run.
Tax savings plan are a combination of wealth creation and savings. Life insurances in India are mainly bought for the purpose of saving taxes. Here you can provide financial security to your family. In case of the death of the policy holder the beneficiaries will get certain amount which is given by the insurance company. ULIPs help you avail the tax saving benefits under Section 80C of Income Tax Act of India under which you can save up to 1.5 lakh of tax per year which you can pay as premium for the ULIP. The amount which is received after maturity is also tax free under Section 10(10d) of Income Tax Act. of India.
The cheapest and the best option is to purchase a term insurance plan. It offers assured sum in case of death of the policy holder. The investment grows into a bigger corpus over a period of time. The money saved by not buying the traditional insurance plan and endowment plan can be invested for generating higher returns. You can also invest in a savings plan which can be assessed easily and instantly. Best savings plan get you an assured sum as well help you generate money through market linked investments. The savings plan will help you in the time of financial contingencies. Savings plan are one of the best examples of tax savings plan as you don’t have to worry about the shortage of money and you can simultaneously earn through market linked investments.
Pension plans which are also known as retirement plans can also be used as a Tax Saving Investments. You can allocate a part of your savings which will accumulate over a period of time and provide you with steady income after your retirement. Hence, that is the reason why pension plans are called as retirement plans. While buying any insurance plans compare them online to avail for the best tax benefits. Never hurry up while choosing a right tax saving plan.
A right tax saving plan helps you to get financial freedom and fulfill your other financial goals in the long run. You can have insurance cover and higher investment returns with a tax plan.
Tags : Tax Saving Plans, Best Tax Saving Plan, Tax Saving, Tax Saving Investment, Best Tax Saving Investments