How can Tax planning help?
As mentioned earlier, the tax – planning exercise can go a long way in helping investors save for the future. Firstly, since investing for the purpose of tax – planning is an annual exercise, it imparts a degree of disciple to the process. Secondly, the amounts involved (max. Rs. 1 Lakh) tends to be substantial, if one is required to plan at one time during the fag end of the FY. Over longer time frames these investments can have a substantial impact on investors finances and can help create wealth. Tax planning within a medium term will help increase your take home.
