Dear Community,
It is that time of the year again when investors scramble to save taxes. During such a frenzy, it is important to remember that investing in tax-saving instruments purely for the sake of saving taxes is unwise.
Instead, you must focus on S.T.A.R.T. being smart with your tax-saving investments.
S - Strategize Early
Don’t leave it to the last ball, finish your tax savings early. There are still 13 days to go. You still have time to make the right decisions.
T - Take Advantage of Deductions
Section 80C is popular but there are many more provisions in the Income Tax Act that allow you to save more tax, such as…
source: Value Research
A - Allocate Smartly
Going all in on one particular tax savings instrument is a common mistake. There are multiple tax saving options available such as ELSS Funds, Tax Saving FDs, NPS, and more. Use them to your advantage.
Speaking of NPS, we have a neat calculator on our website that helps you understand your returns + tax savings on NPS: NPS Calculator - National Pension Scheme Return Calculator | Dhan
R - Regular Review
Review, re-review, and keep reviewing your tax-saving investments for any adjustments.
T - Track Progress
Keep an eye on your returns and the performance of your tax-saving investments.
Remember, tax savings alone isn’t the goal - your money should compound when invested. If that’s not happening, go back to R.
That’s it for today’s post! Tell us how you’re saving tax before 31st March 