How to Save Money by Saving on Tax

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How to save money by saving on tax
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• Your twenties are the best time of your life. You
  have very little to worry about, your life is
  just taking off and youre open to exploring new
  opportunities. But this is also the time to
  invest and kick start your wealth creation.
  Disposable income is in abundance for most twenty
  somethings, with many employment opportunities
  and handsome packages.

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• Although its important to enjoy your life in
  your twenties, its also the right time to start
  saving for your future. You may think that its
  too early for you to invest in retirement plans
  or even endowment plan. But did you know that you
  can save up to 1.5 lakhs a year on income tax by
  investing in the right endowment plans.

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Some Endowment Plans That You Can Invest in and
make money
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Unit Linked Investment Plan (ULIP)

• ULIPs are a great way to invest your money.
• They provide insurance cover as well give you
  returns through equity.
• This plan provides life risk coverage.
• It can provide between 5-11 returns, but they
  are not guaranteed.
• The ULIP should be held for a minimum duration of
  10-12 years to seek maximum returns.

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Life Insurance Plan

• Life insurance plans are an investment everyone
  should make.
• It is the first step to your financial planning.
  It should be treated more as an investment than
  an insurance policy.
• When choosing life insurance one should opt for
  term insurance as it comes with low risk and high
  coverage.
• A life insurance premium is something you should
  add to your monthly saving plan. The life
  insurance claim that you receive on maturity of
  the policy is tax free.

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ELSS Tax Saving Mutual Fund

• They offer the highest returns compared to any
  other tax saving investment plan in the country.
• The returns are not guaranteed but if you can
  afford to take some risk, your earnings can range
  between 12 15.
• You can even opt for the dividend scheme and earn
  regular income from your investment.

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Public Provident Fund

• This fund provides maximum tax saving benefit for
  the people.
• The interest rates are updated by the government
  on a yearly basis. Most banks offer a PPF
  facility for its customers.
• This scheme ensures maximum tax saving benefit
  for its users. At the moment the government
  allows around 8 interest in PPF.

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Thank You