What is Tax Planning?
The hard-earned money that you earn doesn’t need to be sacrificed to pay taxes.
Instead, with various investment opportunities allowing tax benefits, one can invest in these financial tools to secure their future and save on taxes.
Any amount, small or big, can be invested regularly to reap multiple rewards in the future
Tax Planning the right way
Tax planning is an individualistic task with every individual earning a specific amount and having certain goals and aspirations. Your tax plan needs to include the investment opportunities that work best to suit your goals and personality. Critical factors to consider are:
Tax saving instruments allow you to enhance your wealth substantially by offering various raEvery investment has its own potential for risk and reward. Based on your risk profile, you should opt for the investment opportunity that suits you. For instance, a low-risk, low-return investment like a Debt Mutual Fund or PPF may be suitable for a conservative investor. On the other hand, an investor looking to maximise wealth with higher-risk capacity may prefer an equity-based scheme.tes of returns as per the scheme opted for.
Several investments have a lock-in period, during which investors cannot withdraw their money. These can range from 5 years to 15 years dependent on the scheme. When planning your investments, be sure to consider the lock-in period