- Come March and we see people frantically stress over tax payments. This is when we get tax-related work done, like investing in tax-saving instruments, getting the right forms from insurance companies and actually filing our taxes.
- Naturally, it is only then that we realise exactly how much we owe as taxes. In the face of a big tax payment, we desperately search for solutions—anything to save money! But wouldn’t it be much better to have a handle on tax long before it’s time to pay it? And wouldn’t we absolutely love to pay a little less on tax than we do?
- Suppose you earn Rs 5 lakh a year and your income tax liability amounts to Rs 23,690. That is a large amount! Now suppose you invest Rs 1.5 lakh—i.e. 30% of your total income—in tax-saving instruments. You can bring down your income tax liability to Rs 10,000—a 57.7% reduction. Imagine all you can do with the money saved!
Taxation
