After 3 years partial withdrawal is possible in ULIPs. So here is wjhat you need to do. Pay your premium, take the reciept nad produce it to IT for deductions. Go for partial withdrawal and take your premium back . He He He
I thought there weren't many folks who had this opinion. The biggest scam in tax savings, in this age and era, is the tax savings from home loans and interest. In any tier-1 or tier-2 city in India, if you are purchasing an apartment/house with a 60-80% loan, the amount you 'lose' on the loan interest can't be remotely matched by your tax savings. So, unless you definitely need to buy a house/apartment, I won't recommend doing it. Folks who say 'buying a house is good, it helps you save tax' should get out a calculator and do a 15 or 20 year calculation.
Holy crap!!! Has the writer gone crazy! First additional personal cover is highly essential apart from company policy, the benefits which even the writer would be aware of, if not he is not worth writing this article. Home loan is also a must if one is paying high rent, at least one pays for the home he possess!
Agree with writers' opinion. I am also a victim of such tax saving measures, which has put pressure on the finances and living standards.Better pay tax and plan & enjoy life. Let Tax Saving excercise do not drive your lifestyle by putting financial burdons of Home Loan EMI,unnessessary insurance premiums and unprofitable debt fund investments.I agree that Do not invest for Tax saving purpose, Let tax saving happen autometically through your really needed planned investments only. In fact paying some ammount of tax releases usefull fund for better utility, than getting fund locked for a longer period or having taken continued financial liability and becomming BP patient forever. It is OK if tax saving happened through your financial habits instead it drives to decide your life style. A good article , which could have been better if some real life examples with calculations are given for further understanding.
The author has missed out the most important benefit of additional cover for medical. Pl remember the group insurance would cover only till you are in employment, at the crucial age of 58 when you would be prone to more diseases, you would live w/o a cover and even if you go for insurance at that juncture in all probability there would be good number of exclusion clauses of diseases. Moreover in today's employment compulsions of frequent job changes and pink slips you might get hit very badly at a worst point in your life economically. Smart thing would be to negotiate with your employer to reimburse the personal medical insurance cost incurred in lieu of the group insurance.
Good and informative post. It would have been better if tha author had also indicated which investments (for tax savings) are better.
On Medical Insurance, it is worth noting that there is almost no Cashless facility for individual anymore. Besides, there so many conditions that one hardly gets a re-reimbursement that is worth while.
We "Save" Taxes with the sole thought of "Why Should government eat my money". We dont do such detailed calculations. We also end up falsely declaring the savings to save TDS and loose a bunch when not able to submit proof on time for companies to calculate the Tax due. Tax saving like everything else should be planned and if we do have to pay taxes it should not end up a prestige issue.
Our Tax structure is defective, saving is done who are to adjust the income, not by those who are paying taxes under compulsion. Anyone who is earning Rs.3 to 4 lacs cannot save Rs.1.20 lacs -maximum limit for tax saving.This limit must be enhenced to Rs.5 lacs, but our Finance Minister is always for this low middle income group to punish, therefore pay TDS on Rs.10000 bank interest, pay service tax on petty telephone bill of Rs.100/-, etc.,etc.,This never happened even during Aurangzeb rule.