The Psyche of Tax Saving

Saving Money, even Mr. Neeson Agrees
He say he can do it, trust the man!

We are perfectly rational beings……until we hear the magic words .. SALE…DISCOUNTS ……and then our irrational buying of useless things start. And then we optimally use our rationality to make the best use of these things.

Most of us also display the same irrationality when we are nearing the end of the Financial year reason being

You Understand Right

The time of the year when the uniform thought process of all earning population from the diverse professional background is

TAX SAVINGS……… But is Tax Savings always pro-money.

As Financial Advisors…

We have observed the primary objective of Tax planning for our eligible working population is to ensure that they do not have to part with a single rupee more than required towards taxation.

Moreover, people also want to be Tax compliant to alienate themselves from any interference or scrutiny by the Income Tax Department. The main objective of any investment i.e. satisfactory returns gets subordinated to tax saving.

The conservative investor is very complacent with Saving Taxation via the Provident fund routes …….but if we discount the returns with factors like inflation and lock-in period …the benefits of this investment is hardly worth mentioning.

Solution?

Equity Linked Savings Schemes , with an average return of 15%*
p.a. or more and a low lock-in period of 3 years however provide a much better option .

But then again, the question is if tax planning is so vital … why postponed it till the last quarter.. wouldn’t it be of prudence if we start planning for tax saving oriented investments at the start of the financial year ….and actually enjoy the dual benefit of saving tax and earning more.

The term ‘Tax Saving’ is hyped most, discussed more but efficiently implemented the least…. hopefully it will be different for you the next time.

One thought on “The Psyche of Tax Saving

  1. The best & thought provoking, inspiring line is, “If tax saving is so vital, why postpone it till the last quarter…” that is 100 % right. Start investing As Soon As Possible. The moment you realize this, that is the best time to start investing. If you are reading it now, this is the best time for you… Start now…!!!

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