Every year, millions of Indians buy life insurance policies to save tax. These policies neither give good returns, nor offer adequate cover to the policyholder. They eventually become millstones around the necks of the buyers, preventing them from investing for other financial goals. Not many insurance buyers understand this. Most don’t even understand the features […]
Pension plans from insurance companies are not a great way to save tax because of the high charges. Although Ulip charges have been reduced, pension plans still levy high charges on buyers. In comparison, the low-cost NPS is a much better alternative. The pension plans from insurance companies are also not as tax friendly. Only […]
This is probably the easiest way to save tax if you have a Net-banking account. After the demonetization and the digital push, almost everyone has one. A few clicks of the mouse and your tax planning is done. However, as mentioned earlier, this convenience comes at a very high cost. Interest rates have come down […]
After spending several years in the doghouse, this popular tax-saving instrument is back in the limelight. While banks have cut interest rates on tax saving FDs, small savings schemes (including NSCs) have been spared. At 8%, the five-year NSCs are offering close to 75-100 basis points more than what fixed deposits give. Also, unlike PPF […]
Senior citizen taxpayers have limited options because their risk profile is very different. The Senior Citizens’ Savings Scheme is the best tax-saving option for them. It offers 8.5% returns and the interest is paid out every quarter. The payment dates are the same for all investors, irrespective of when they joined. It is a five-year […]