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DON’T PUT OFF

TAX SAVING TILL

THE LAST MINUTE

Everyone knows that spending sensibly and saving

regularly is key to financial security. Yet, many are not
able to save as much as they want to. People who fail to “The main problem with today’s
save, mostly have a steady income and are well-informed
about the importance of saving, yet they are victims of generation is that they never feel
their own aspirations. The emotions attached to money they have enough to save.”
decisions often makes cutting back on spending tough.
They simply cannot do the right thing and invest in
saving tax even though they often, feel guilty about not

doing it. But truth to be told, one needs to understand meet at different life stages. This efficient tax planning
that investing in tax-saving instruments is important not should ideally be done at the start of the year. To go easy
just for the time being but also for the long run.When one on the pocket, one can start something as simple as an SIP
invests in a tax-saving instrument, they save tax and at in ELSS. It ensures regularity and discipline of investment
the same time save up for the various goals they need to while serving the purpose of saving tax.

ELSS Benefits of Investing in Equity

The smart way of Linked Savings Scheme (ELSS)

saving tax +

Reduce Tax Growth
Under Section 80C of the Liability Potential

Income Tax Act, ELSS helps Lowest Lock-in

in tax savings of up to 64,116* Period

The individual is assumed to earn a taxable income of more than Rs. 5 Crore. The effective tax rate is 30% marginal tax + 37% surcharge on the tax rate + 4% Health and Education cess = 42.74% i.e. highest marginal
tax bracket. The individual is assumed to utilise the complete tax deduction limit of Rs.`150,000 per financial year under Section 80C. This deduction is allowed to an Individual or an HUF. This is only to illustrate the
tax saving potential of ELSS and is not a tax advice. Please consult your tax consultant for tax purpose. *This is applicable assuming the person is in the old tax regime. The Finance Bill, 2020 has proposed a New
Personal Tax Regime where most of the deductions/exemptions such as section 80C, 80D, etc. are to be foregone. This is however optional.

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