TAX PLANNING: AN ESSENTIAL ELEMENT OF FINANCIAL PLANNING
Financial planning is considered to be most essential element of life. It has been rightly said that ‘Future is Uncertain’. Financial planning plays an important role in overcoming your financial uncertainties. Tax Planning is considered to be an essential part of Financial Planning.
A survey conducted by Rights Horizon among IT/ITES employees with the age group of 25-30 yrs. in major southern cities of India reveals that these employees are very poor in financial as well as in tax planning. The survey was conducted amongst 1169 salaried individuals in 3 cities viz. Bangalore, Chennai, Hyderabad. It found that nearly 70% of salaried individuals are not utilizing the Chapter VI A deductions (max. deduction available upto (INR) Rs. 1, 00,000/-) of Indian Income Tax Act 1962.
Chapter VI A (commonly known as sec. 80C) is an important sec in Income Tax Act which helps you to save taxes as well as money.
The study has found that many of them pay more income tax which could have been saved through financial & tax planning. In Chennai only 24% IT people completely used the Rs. 1 Lac limit. Nearly 58% people invested in Public Provident Funds/ National Saving Certificate while 35% in Equity Linked Saving Scheme (ELSS) & 12% in home loans. Most of the individuals have a habit of investing at the last moment of financial year when you are running out of your finances.
As no one can predict future we should be prepared for it. Every one should make a habit of saving right from the college days. Your investment portfolio & savings should be diversified so that it will maintain right balance between risks as well as earnings. To have a better and secure life consult your Financial Advisor, Chartered Accountant. For more contact us:
Mr. Vilas V Kulkarni
(Chartered Accountants),
259, IInd Floor, Bajaj Nagar,
Nagpur (India) 440025.
(M) +91 982 358 3667.
Mr. Harshal V Kulkarni
(Financial Consultant)
(M) +91 976 599 9467