Tax Planning

Paisa Invest – Best Tax Planning Consultant in Kolkata, India

Do You Know What is Tax Planning?

Tax planning plays a vital role in financial planning, it transforms your finances. The Financial planner always considered tax planning while financial planning. It is a most important part of wealth accumulation because everyone doesn’t have knowledge of “how to save tax”, they are not as much aware of articles of income tax. So as financial planners or advisors we have a responsibility to make aware our client how to save taxes so you will be able to make more investments by saving that extra amount by taxes.

The best part of tax planning is while doing your investment you can avail of tax benefits. Tax planning can be done by simply investing a portion of your total investment portfolio in some securities for which the government has provided tax benefits.

List of available tax saving options according to the various sections of the income tax act and when investors should consider them according to their goal and investment.

Various Tax Planning Options

Section 80C: Allows deduction on a host of avenues including PPF, life insurance premium, ELSS, Fixed deposit, children’s tuition fee and NPS. Here deduction limit is Rs 1.5 Lakh.

One of the most preferred avenues for investment, life insurance has long been considered a tax-saving tool. But the primary objective has been neglected and investors end up buying the wrong product.

Life insurance is the most cost-effective tool when you have to provide financial protection to your family in case of uncertainty. What amount of life insurance one should have depends on many factors such as income, expenses, liabilities, goals etc. Pure life insurance i.e. Term Insurance is the right instrument to buy high life insurance coverage. The tax benefit is the inherent advantage that comes with all products.

Section 80CCD (2) The employer’s contribution to the NPS, too, is entitled to tax relief. Here deduction limit is up to 10% of the employee’s salary including dearness allowance.

Section 80CCD: Additional deduction for investment in the NPS, over and above the 80C limit. Here deduction limit is Rs 50000.

Section 80TTA: Interest earned on savings deposits with banks and post offices can be claimed as a deduction. It provides a deduction for interest income.

Here deduction limit is Rs 10000.

Section 80GG: provides relief to employees who do not get HRA as well as to self-employed professionals. Here deduction limit is Rs 5000.

Section 80E: Interest paid on education loan for funding higher education of self, spouse and children. Here deduction limit: Interest paid up to 8 consecutive years.

Section 80D: Medical emergencies always take us by uncertainty, it is always to be safe than sorry. It covers health insurance premiums, health expenses, incurred for parents without cover allowed.

Deduction limit: Rs 25000 and in case of senior citizen Rs 50000.

Similar to this many more sections to be needed to know, so contact us we will be glad and happy to help you.

We at Paisa Invest, Keep you and your goals as our priority. Not only the fulfillment of your goal is our responsibility, but we also make sure that this entire journey of making wealth becomes a safe & happy journey for you.

We have evolved ourselves as an eminent financial planning firm that is trusted for their professional competence, relied on for their unbiased & quality advisory.

Paisa Invest specializes in offering a holistic approach to Personal Financial Planning & Financial advisory services for our clients in India & worldwide.