Category Archives: Tax planning

How you can earn tax free interest despite being in the highest tax bracket

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Every year, many people end up paying more taxes after exhausting all possible tax saving options. The fact that they invest at the nth hour just to save on tax and submit tax proofs in their offices is another story. Investments done in a systematic and phased manner can actually take care of tax planning from the beginning of the financial year itself. There is adequate time to plan the same.

One such option is investing in bank fixed deposits. You might consider it as the most tax inefficient. But be it for short term goals, emergencies, etc., everyone inevitably invests in bank deposits. This option however can be smartly utilised to reduce your tax liability.

Invest via your parents/children and save tax :

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With the July 31 deadline nearing for filing tax return, we rush to invest in the conventional options to save on tax. Investing under S/80C and claiming medical expenses and house rent allowance are some common modes of saving tax.The human tendency to procrastinate till the end hour in filing returns does not allow us to explore some not so common options for tax planning.