Skip to main content

Tax Saving mistakes to avoid in 2017

 

It goes without saying that saving money is as important as earning money. One way to save money is by taking advantage of tax-saving deductions to minimize your tax outgo as much as you can. But that's easier said than done. Saving taxes is tough and we tend to make it tougher by committing common mistakes.

Here are five common tax-saving mistakes that we can easily avoid.


Rushing to save taxes in the last quarter

Typically, most taxpayers think of their tax-saving investments only in the last quarter of the financial year. This is a folly because rushed investment decisions can lead to investments in the wrong products. Tax-saving investments made at the last moment won't allow you to benefit from them entirely.


What to do: Start investing in tax-saving avenues at the beginning of a financial year. Plan your investments out in different options like ELSS funds, PPF, fixed deposits, etc to get the long-term wealth creation benefits of a diversified portfolio. The more time and thought you give to your tax-saving investments, the more you will be able to benefit from them.


Not fulfilling the 80C limit

An individual or HUF can save taxes up to Rs 1.5 lakh under Section 80C of the Income Tax Act. Unfortunately, not everyone is able to meet this limit. Often, taxpayers end up paying more taxes than they need to because they're unable to take advantage of the Section 80 deductions.


What to do: Even though you may not need to invest the entire Rs 1.5 lakh to save taxes, you should make sure you invest as much as you can. Plan your tax-saving investments in such a way that you're able to take the benefit of the deductions made available.


Ignoring basic expenses that are exempt

A lot of tax payers are not aware that they can avail tax deductions on a number of expenses like children's tuition fees, life insurance premium, medical insurance, etc.They make these expenses but don't claim deductions on them and end up paying more taxes than they should.

What to do: Learn about all the expenses that are eligible for tax deductions under Section 80. This is money that you have already spent, it is almost a crime on yourself to pay that amount of taxes as well. Get a CA to help you out if need be, but make sure you claim the deductions you can.


Not investing in ELSS

The equity-related risks that ELSS funds come with often turn investors away from them. Taxpayers are not prepared to take market-related risks and opt to invest in fixed income investments like PPF and FDs. But this is a mistake because only equity can generate inflation-beating returns.


What to do: Allocate a part of your tax-saving portfolio to ELSS funds. You may not want to have higher exposure to ELSS funds, but a certain portion in it is essential to make sure your tax-saving portfolio earns high returns over the long-term.


Not setting investment goals

More often than not, tax saving investments are something that you do and forget about. In many cases, they are done at the last minute when the financial year is drawing to a close and then not given a thought for another year. This doesn't allow you to get the benefit of wealth creation out of them.


What to do: Plan your tax-saving portfolio and align them with your long-term goals like a child's education or wedding or your own retirement. Doing this will allow you to get the dual benefit of these investments–saving taxes and meeting long-term objectives.


These are the five common tax-saving mistakes that are repeated too often by taxpayers. Make sure you avoid them this year to give yourself the best possible chance of making optimum use of the income tax deductions available to you.







------------------------------------------
Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds

Top 4 Tax Saver Mutual Funds for 2017

Best 4 ELSS Mutual Funds to invest in India for 2017

1. DSP BlackRock Tax Saver Fund

2. Invesco India Tax Plan

3. Tata India Tax Savings Fund

4. BNP Paribas Long Term Equity Fund



Invest in Best Performing 2017 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms


For further information contact Prajna Capital on 94 8300 8300

--------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Call us on 94 8300 8300

---------------------------------------------

 

Popular posts from this blog

Mutual Fund Review: Taurus Tax Shield

    Taurus Tax Shield has seen a turnaround in performance since 2007, but still remains a volatile offering… The fund has seen a turnaround in its performance since 2007 and has delivered impressively during market rallies since then. The portfolio is also more diversified. It contained its downfall to an average level in 2008 but is still one of the most volatile offerings in this category. Bold investors can look at this fund.   Strategy The fund manager invests across the market capitalisation and sectors. The selection of stocks is made on the basis of long-term business prospects and value creation. Fund Insight Launched in March 1996, the fund was a laggard with just two annual outperformances. Concentrated stock bets and high exposure to mid and small caps led to it being hit harder during market downturns. The number of stocks in the portfolio never exceeded 20 and it was not rare to see the top 5 holdings account for around 60 per cent of the portfolio. After b...

Use Mutual Fund SWPs for getting fixed payments

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   Investors time withdrawals optimally to save on tax The systematic withdrawal plan, or SWP, could be called the lesser known cousin of the much talked about and publicised systematic investment plan (SIP). There's yet another cousin — the Systematic Transfer Plan ( STP ). In SIP, you invest a fixed sum of money at regular intervals (monthly/ quarterly) to buy some units of a mutual fund scheme. In SWP, as the name suggests, you do the opposite: You redeem some mutual fund units from your portfolio to get a fixed sum of money at regular intervals (monthly/quarterly/half year/yearly). In SIP, you get a higher numbers of units when the markets are down, and lesser in a buoyant market. In SWP, going by the product logic, you redeem higher number of units when the markets are do...

AXIS Long Term Equity Fund - The Best Tax Saver Fund for 2016

  AXIS Long Term Equity Fund - Invest Online   History:   The open ended mutual fund was launched on December 21 in the year 2009. It is benchmarked against BSE 200 and managed by the fund manager JINESH GOPANI. Initially the scheme was called as Axis tax saver fund but later it was renamed as Axis long term equity fund with effect from September 2, 2011. Nature of investment: As far as asset allocation is concerned, 97.52% of the stocks are equity and 0.02% is debt based. The primary focus of the fund is to invest in diversified equity stocks that have higher growth potential. Total asset size of the fund is in the tune of 4,996 CRORE as of June 30, 2015. Performance: The performance of the fund for one year, 3 years and 5 years are 23.6%, 29.9% and 19.1 respectively which are far greater than 6.4%, 14% and 5.6% benchmark figures. It has also preformed fairly well against SBI magnum Tax Gain (G) and HDFC tax saver (G). The growth comparison is enumerated below;                        ...

IDFC Classic Equity Fund

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   IDFC Classic Equity Fund IDFC Classic Equity is a large-cap equity fund which currently has assets under management worth Rs. 158.52 crore. It was launched in August 2005. The fund is benchmarked against the BSE-200 Index. Performance YTD 1-Year 3-Year 5-Year Since Inception IDFC Classic Equity 0.93 26.61 6.30 1.01 11.65 BSE 200 1.52 17.31 6.00 1.99 12.98 All figures in % as on January 31, 2013; Returns above one-year in CAGR terms ...

Health insurance guide - Part I

Insurance, by definition, is morbid. What if I die suddenly? What if my home caught fire? What if I had to undergo expensive medical treatment? What if something that I thought happened only to others befell me? Insurers, who work with large samples, calculate the probability of such an event and, hence, the possibility of them having to pay out a sum of money to mitigate, to the extent possible, the effects of that disaster. However, the possibility of you undergoing some kind of expensive medical treatment during your lifetime is far more likely than you dying suddenly or your house burning down. Given that costs at private healthcare facilities, where you are most likely to land up, is high, and, doubling every four years 10 months or so, the rest of your money life could easily go out of whack if you had to incur such expenses. Just 12 per cent of India's population is covered with some sort of health insurance. Pared to the bone, for a comparatively small price, health insu...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now