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