However much you want, you just cannot avoid filing tax returns. To reduce this inevitable pain, 4Ps B&M gives seat-of-the-pants techniques, of course, for dummies!
The name Benjamin Franklin might not be that
familiar to those not well versed with western history. But the philosophy this founding father of America and top inventor gave to this world holds fort till date, with his statement, “Nothing is certain, but death and taxes!” As the financial year draws to an end, taxation is one buzzword which is bound to keep us busy for the next two months. Tax planning has already gained momentum; more so as March is synonymous with taxation. Salaried tax payers, like Sasawata Mukherjee (Geologist, Gujarat State Petroleum Corporation Ltd), comment, “It is only during the last quarter of the year that I gear up for tax planning and in a hurry I have to depend a lot on the agents advice.” It is no wonder that financial products are marketed more during this period. Be it mutual funds (the primary one being the Equity Linked Saving Schemes – ELSS) or insurance policies (Unit Linked Insurance Plans – ULIPs and endowment plans are the major pitch), both eye on capturing a significant share of an individual’s tax-planning kitty, mainly because investments up to Rs.100,000 are eligible for deduction from one’s gross total income under Section 80 C of the Income Tax Act.
Nevertheless, a prudent financial planning requires an individual to view investment or spending decisions through the lens of tax efficiency. Says Santosh Mandal (Tax Consultant, Simon and Cailand Pvt Ltd ), “Not only does the knowledge of tax incidence with respect to insurance or mutual funds ensure a conceptual integrity to personal financial decisions, but it also enables the individual to make the most of every investment by maximizing returns.” And now, the Life Insurance Council (LIC – the industry body of life insurance companies in India) in its pre-budget memorandum to the finance ministry, has sought for the introduction of a separate limit of Rs 1 lakh per year with respect to IT exemptions for just life insurance and pension policies under section 80C. From all these perspectives, the knowledge of tax implications on MFs and insurance policies becomes imperative.
The name Benjamin Franklin might not be that
familiar to those not well versed with western history. But the philosophy this founding father of America and top inventor gave to this world holds fort till date, with his statement, “Nothing is certain, but death and taxes!” As the financial year draws to an end, taxation is one buzzword which is bound to keep us busy for the next two months. Tax planning has already gained momentum; more so as March is synonymous with taxation. Salaried tax payers, like Sasawata Mukherjee (Geologist, Gujarat State Petroleum Corporation Ltd), comment, “It is only during the last quarter of the year that I gear up for tax planning and in a hurry I have to depend a lot on the agents advice.” It is no wonder that financial products are marketed more during this period. Be it mutual funds (the primary one being the Equity Linked Saving Schemes – ELSS) or insurance policies (Unit Linked Insurance Plans – ULIPs and endowment plans are the major pitch), both eye on capturing a significant share of an individual’s tax-planning kitty, mainly because investments up to Rs.100,000 are eligible for deduction from one’s gross total income under Section 80 C of the Income Tax Act.Nevertheless, a prudent financial planning requires an individual to view investment or spending decisions through the lens of tax efficiency. Says Santosh Mandal (Tax Consultant, Simon and Cailand Pvt Ltd ), “Not only does the knowledge of tax incidence with respect to insurance or mutual funds ensure a conceptual integrity to personal financial decisions, but it also enables the individual to make the most of every investment by maximizing returns.” And now, the Life Insurance Council (LIC – the industry body of life insurance companies in India) in its pre-budget memorandum to the finance ministry, has sought for the introduction of a separate limit of Rs 1 lakh per year with respect to IT exemptions for just life insurance and pension policies under section 80C. From all these perspectives, the knowledge of tax implications on MFs and insurance policies becomes imperative.
