Charting Out The Tax Territory

Saving taxes should not be the only purpose when you  opt for tax-savings instruments. Investment should be made in such a manner that they meet your financial goals. Before you freeze your investment options, you should – (1)  fix time vision for liquidation linked with your financial goals (2) know the anticipated returns from different investment avenues to reap maximum benefit  (3)know the effective return on investment after factoring the tax relief at the time of investment, accrual and exit The aim of investment planning is to achieve a balance between maximised returns and adequate liquidity. Tax savings should be supplementary to these. Let us first understand the maximum amount, which you can invest to reduce your tax bill.   Section 80C: The Rs1.5 lakh tax-saving window An individual taxable at 30 per cent can save around Rs45,000 if she claims Rs1.5...