Assistant for Tax Saving Plans

Overview

Tax saving is a most essential part of financial planning. It provide a way to the taxpayers by which they can easily save tax. The plan for tax saving help us to save taxes and increase our income.

Options for tax saving plans

1. Insurance for health
2. Tax saving mutual funds
3. Insurance for life
4. Pension plans
5. Scheme for saving of senior citizen
6. Certificate of national savings

Benefits

1. The tax saving helps to improve the tax outflow for an instant change in income like the bonus and the promotion as the yearly tax outflow depends on the income and the investment made.
2. This tax savings help in the financial planning as almost all the investments which are eligible for tax saving have mid to long term tenures.
3. Tax savings helps to calculate the result of refund timely without any further delay as the refund of tax are made by the government when the investments are made.
4. Tax savings helps to coordinate the tax investments and the cash flows as the cash flow is different for all the people like salaried people, self employed people and the business owners.

Importance of tax saving plans

1. It helps to increase savings by consumption of lower tax.
2. It provides more cash and all the liberty to take care of the required things.
3. It helps in deduction in liability of tax.
4. It helps in achieving various goals of the life.