cont...Part 3 TAX PLANNING AGE-WISE 31-36 During this phase, most of the professionals can generally take advantage of avenues of tax savings other than investments. Contribution to provident fund by self and employer, required life insurance cover for self and family form the major portion of 80C. Tuition fee of the children can also be claimed under the same section. The average age of an Indian home buyer is 30. Most of the professionals in this age group can take advantage of tax savings related to a home loan. They can claim the principal repayment under section 80C and interest repayment under section 24B. For couples who are both liable to pay tax, it is advisable to take the home loan on a joint account. It is also advisable to take required health insurance cover for self and family which would account for section 80D. For professionals who can still make investments under 80C, they should chalk out the goals they want to achieve and their respective timelines, before making any tax related investments. Then based on their risk appetite and time horizon, they can invest in relevant tax saving investments. Avoid over doing tax-saving investments.
Posted on: Sun, 02 Feb 2014 05:51:34 +0000
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