Come March and we see people frantically stress over tax payments. This is when we get tax-related work done, like investing in tax-saving instruments, getting the right forms from insurance companies, and actually filing our taxes.
Naturally, it is only then that we realize exactly how much we owe as taxes. In the face of big tax payments, we desperately search for solutions—anything to save money! But wouldn’t it be much better to have a handle on tax long before it’s time to pay it? And wouldn’t we absolutely love to pay a little less on tax than we do?
Suppose you earn Rs 5 lakh a year and your income tax liability amounts to Rs 23,690. That is a large amount! Now suppose you invest Rs 1.5 lakh—i.e. 30% of your total income—in tax-saving instruments. You can bring down your income tax liability to Rs 10,000—a 57.7% reduction. Imagine all you can do with the money saved!
