Five strategies to save tax.
Happy New Year 2023
New Year 2023 has arrived. We are in January. I do not know if this is the time for viral fever or not, but many people will get tax fever. Everyone in the tax bracket will Look for ways to invest in tax saving schemes, to reduce tax. Usually, they end up in insurance. There are better ways to get more returns than that.
- ELSS: Equity Linked Savings Scheme. In this plan, compulsory locking years are only three years, not like ten years in insurance. More than 40 fund companies here are offering these types of schemes. We have selected five funds for your investment consideration. We have tabulated three-year and 10-year returns in % for proper understanding and comparing other similar tax savings instruments having different lock in periods. In the next 5 years, the probability of ELSS giving more return than current 5-year tax saving bank deposit bearing interest rate of 7.5%
Fund Name | Rating | 3 Yr Ret (%) | 5 Yr Ret (%) | 10 Yr Ret (%) |
Canara Robeco Equity Tax Saver | 5 | 19.58 | 14.39 | 14.8 |
DSP Tax Saver | 4 | 17.55 | 11.55 | 16.11 |
IDFC Tax Advantage (ELSS) | 4 | 22.6 | 11.27 | 16.47 |
Kotak Tax Saver | 4 | 17.8 | 12.17 | 14.32 |
Mirae Asset Tax Saver | 5 | 18.03 | 12.96 |
- SIP: SIP is the most popular word now. We know that investing in SP is better in many ways than investing in a lump sum. Recession is round the corner and rising interest rates are visible. In this volatile season, SIP in ELSS seems very appropriate. So put off the hesitation, start an ELSS-SIP of around rupees 10,000 - 12,500 per month in any one of the above-listed schemes and harvest the potential benefits of tax saving and better returns.
- Health insurance: In this covid period even if you have employer group insurance, over and above it is good to consider availing health insurance for individuals. This is tax deductible under section 80D. In this uncertain period of employments, having personal health policy will cater to medical need, during switching the jobs or when leaving company
- NPS: Those who now think that they should be comfortable in retirement, please consider investing in NPS. An additional tax deduction of ₹50,000 can be made by investing in pension (NPS) (80CCD 1B) schemes.
- Earlier is better: In the month of March, it is obvious that the investment in tax-saving schemes will increase. But many IT companies and other companies will get the tax saving details from the employees in December and January. They calculate the applicable TDS based on these inputs. So, there is no point in sleeping till the 11th hour. Wake up. Start investing in ELSS through SIP mode Now, reduce your tax burden and TDS outgo.
Contact us to save tax
Radha Consultancy : Contact us
I would really appreciate if you could please take a few seconds to post a Google review in the link below
you can give your feedback by clicking this link which will help me for improving my services better
You can read the previous articles about tax saving article published last year here
No comments:
Post a Comment