Do I Need Tax Planniing

Any person, who has earned money and subsequently paid taxes, has not thought about the lack of fairness in the way the convoluted and mysterious legal system draws off a large chunk of the fruits of one’s labors in the financial year. What many among these do not know is that the same legal system allows for concessions in several diverse situations, which are just waiting for you to avail of them. A small business owner or wage worker cannot be expected to be familiar with all of the nuances of the nation’s taxation litigation, but if you hire someone who does or do enough research on your own, the payoffs are enormous.

The financial arena in today’s world needs a lot of wise decisions to keep it in balance. Whether you’re a common person who earns a salary or a businessman, you need to protect and save your money. It is to this end that planning for a proper tax saving methodology is very important. 

  
Planning from the initial phase

One should start planning from an early phase in the financial year, even if it seems too early for the task. It saves time and energy if you’re prompt, and relieves you of losing a high percentage of your income as well as personal tension. It may seem to a few that hiring a professional to organize one’s taxes is an overcautious decision and unnecessary for you, but it is an extremely vital one. Some try to avoid it when it comes to personal tax saving but it is a must and should be done in a proper manner. LIC New Jeevan Anand Policy 915, SBI Shub Nives and many more are there to avail benefits. Another common belief is that insurance is the only product that gives you a tax benefit. In depth tax planning shows otherwise.

There are different tax plans each of which has its own benefits. You can handle and plan according to your portfolio. An individual business or tax payer needs a unique tax plan tailor made to suit their form of income, consumption patterns, tastes and personal situation. For example, were you aware you could receive tax concessions by declaring allowable deductions for expenses incurred during common business processes like paying fees to health/retirement plans, hosting clients and making donations to charity? Another simple action is to split your taxable income between family members, thereby reducing your personal income and hence the taxable portion of your income falls. In fact, tax evasion becomes laughable, because the legal system is providing you with an easily accessible avenue to do it legally. Therefore, tax planning is required and a must be it through professional help or personally.

 

Now, invest your money in Jeewan Anand policy by LIC (https://www.mudranidhi.com) and give rest to your mind. This policy is created by keeping in mind the growing needs of people. This plan offers you lifetime security, even after the maturity of the policy up to the age of 100 years. Thus, make investment today and enjoy benefits tomorrow. The term period of LIC Jeewan Anand policy starts from 15 years until 35 years and the person who comes into the age bracket of 18 to 50 years can acquire the policy. Not only this, it avails with the provision of double death benefit which is provided in the cases like accidental death up to the 70 years of age.

How to Save Income Tax with PPF

The PPF which is commonly known as the Public Provident Fund has been branded as the most efficient tax saving plan in India under the government policies. Every individual vouches on this plan. It is a fully government operated scheme. Few of its unique beneficial features give it the popularity among all the ages. So here are the features of this tax saving instrument moneywise.

• The Investment limit:

The investment amount is very flexible and makes it easy for every policyholder to invest according to their need and also income. The minimum investment starts from the nominal amount of 500 Rs. and maximizing to 1, 00,000 Rs so that you can select as per your comfort.

• Safety Confirmation:

It is a very safe investment plan as the bank takes the responsibility to process the plan and the money is safely kept with the government of India.  And the defaulting chance of the government towards your investments is very low.

• Tax saving:

As this falls under the section 80c so tax will be saved without doubt. The other features it provides that the interest amount which is paid is fully tax free and also the redemption amount which is the insurance maturity amount is also saved. 

• The Interest Rates (returns):

The return it gives is quite good. The interest rate for the recent year is up to 8.7% scoring high on all the parameters. The bond yield system has always been a benchmark in the market so linking its interest rate to this has made the Public Provident Fund a more attractive to the investors.

• The Locking Period:

The total period of the PPF is 15 years in tenure and this lock in period give a benefit in tax rebate too. Also, during this period, you cannot close your account except in exceptional cases of death. This could be increased by 5 years any time which gives you flexibility unlike most of the insurance plans. In fact many of the insurance plans do not offer good surrender value on surrendering policy.

Therefore, investing in any PPF scheme is very beneficial as it helps you in saving tax easily. For example your income which falls under the tax slab is Rs 4 lacs. Now, you have invested in Public provident fund (PPF) scheme RS 70,000 which is the maximum exemption limit for tax. So, automatically, the taxable income goes down to Rs 3, 30,000. Therefore, now you will be liable to pay a tax not for Rs 4 lacs but for Rs 3 lacs 30 thousand.

This is the best way of saving tax as well as securing your future by making a safe investment.

New Jeevan Anand policy:- 

LIC of India has introduced New Jeevan Anand policy with slightly changed features in previous jeevan Anand policy by adding a term ‘‘new”. It is a modified plan of the old Jeevan Anand. All age group people can take this policy. Policy holder will get financial protection against death throughout lifetime validity. A mixture of endowment policy plus whole LIC New Jeevan Anand Policy 915. Under this policy LIC has made an arrangement of Loan facility, Risk coverage till the end of policy term. Other eye catching features of this policy are Accidental death and Disability rider. Go for it!

Tax Benefits Insurance Plans

Risk of loss is a factor which detains everyone from achieving pecuniary gain. Risk of losing money holds you from investing in any business endeavor. Therefore the only, one option left for you if you want to transfer your risk factor to someone else in exchange of money is insurance. All the insurance companies are expert in these fields. They will charge you a nominal amount of premium fee, and against that they will provide you money right on time of your need. Therefore if you get yourself or your business entity insured then you can get a peace of mind and can easily proceed with business risks. Medical insurance is a growing sector these days as it ensures you with money when, it is of an utmost need. But medical insurance does not covers you if you have severe disease like diabetics, cancer etc.

These days the insurance companies provides insurance policy for almost every risk oriented sectors. They secure you from fire risks to political risk too. Nowadays vehicle insurance is a mandate for every vehicle owner as chance of risk is very frequent in that sector. But before choosing your insurer you should always go through their policy rules and try to avoid investing in insurance companies who has very stringent claim policy.

One of the main reasons why people opt for insurance policy is that it ensures you tax benefit. Through getting an LIC Iife insurance policy you can pay tax and get yourself insured both at the same time. But all insurance company does not provide tax benefits. Only some which are registered with government or nationalized insurance companies provides so. These insurance companies offer different tax benefits for HUF and individuals.

According to section 80d of Income Tax Act you are entitled to certain benefits if you invest your money in governmental insurance companies. Several insurance companies offers several percentage on benefit but most of them settles at least 15,000/- of tax benefit on a premium payment of 50,000/-. Always ensure from your insurance agent regarding the extent of tax benefit that you will get, they will provide you with a certain amount which will be deducted from your total income. These days a lot of insurer are getting insured only to get tax benefit as an assesses because Life insurance policies assures a greater tax benefit that the mutual funds. Some mutual funds also provide benefit in tax but mutual fund investments are subject to market risk whereas there is no risk available if you insure yourself. By this way you can protect yourself from the risk of loss and at the same time you will get tax benefit too. 

LIC Jeevan Nidhi Plan :-

You can get higher cover, a smooth return, liquidity, and a lot of flexibility under one policy i.e. LIC Jeevan Nidhi Plan. It has perfect features with tax benefits which is planned by LIC .It has two components: Maturity Sum Assured (a fixed component), plus Loyalty addition (variable), which depends on performance of scheme. If you want to get saving plus security then go for LIC Jeevan Nidhi Plan 818. LIC has always given you such insurance plans that are suitable for you always, in form of Jeevan Nidhi Yojana. The monthly contribution is very affordable i.e. Rs.250 only. So go for it.