What is Tax planning?
Tax planning means a comprehensive action plan to save taxes in a legal manner. Each individual has to pay taxes on their incomes, however, government gives certain benefit to taxpayers, to avoid paying them for a certain amount, in case they take certain steps like-
Investing in certain financial products like Mutual funds, Pension plans of Insurance companies, Nation pension scheme etc.
Buying Life insurance and Health insurance to protect from emergencies.
Spending Spending money on certain things like Paying Home loan EMI, Children tuition fees or medical expenses of particular ailments.
Donating to certain charitable organizations
Any income which is invested or spent for tax saving is deducted from the income, for the sake of tax calculation. Example- Suppose Amit earns income of Rs 10 lacs per annum. His tax liability comes out at Rs 1,25,000. In case Amit puts RS 1.50 Lacs in PPF, then for tax purposes, his income would be taken as only Rs 8.50 lacs. On Rs 8.50 lacs his tax liability is only Rs 95,000.
How Much maximum Tax I can save?
Final tax saving by you, depends on your tax slab.We have put across the table, giving maximum tax saving you can make. To simplify the calculation, Please find the below chart based on an assumption that you are in the tax bracket, where you pay 30% of the tax.
|Section||Detail||Maximum Deduction||Tax Saving assuming highest tax bracket (30%)|
|Section 80C||Investing in PPF, ELSS, Fixed deposit. Taking term insurance. Tuition fees etc.||1,50,000||45,000|
|Section 80CCD-1B||NPS (National Pension Scheme)||50,000||15,000|
|Section 80CCG (1st time investors)||Rajiv Gandhi Saving Scheme||25,000||7,500|
|Section 80D||Mediclaim for Self, Family and parents||50,000||15,000|
|Maximum Tax you can save||82,500|
The list mentioned in Detail column is not exhaustive.
Major Schemes of saving tax as per section 80C
|Process||Product||Maximum Deduction Allowed|
|Insurance||Term Insurance||Rs 1,50,000|
|Employee Provident fund||Rs 150000|
|ELSS Mutual funds||Rs 1,50,000|
|Pension Mutual funds||Rs 1,50,000|
|Post office deposits||Rs 1,50,000|
|Special Bank FD||Rs 1,50,000|
|Spending||Repayment of Housing Loan||Rs 1,50,000|
|Tution fees||Rs 1,50,000|
|Contribution||National Pension Scheme||Rs 1,00,000|
How AdviseSure can help Tax planning
We help an individual taking an informed financial decision. AdviseSure is India’s first multi-product Robotic Advisor and working on the mission to democratize financial services.
Tax planning is most important part of financial wellbeing. We help our customers design comprehensive tax planning solution in a customized manner.
Once you register, you can get following solutions any time, from anywhere-
- Comprehensive tax Saving solutions
- Investing solutions across products
- SIP and regular savings
- Tax Return filing
How do we do it?
Know the customer -
Here with a help of questionnaire we understand customer profile, risk taking ability, needs etc.
Processing the information -
We process the all data collected from customers.
In less than 7 minutes, we deliver you Tax saving plans, which is only for you. As per your profile and need
You can execute your plan with your agent or we can help you investing at 90% lesser transaction cost