October 2021

Come year end, and taxpayers get all worked up to invest in the right tax-saving investment for their portfolio. Why, you may wonder. Well, all tax-saving investments offer a tax deduction of up to Rs 1.5 lac per annum under Section 80C of the Income Tax Act, 1961. An investor can save up to Rs 46,800 each year by investing in tax-saving investments under Section 80C, provided that they belong to the highest tax slab. However, this habit of procrastinating things often comes at a cost. The cost is that in a hurry to choose a tax-saving investment for that particular year, investors often make an ill-informed decision and end up investing in investment options that might not be suitable for their investment portfolio. In this article, we will understand different tax saving investments that you can consider adding to your investment portfolio.

Equity Linked Savings Scheme (ELSS)

As mandated by the Securities and Exchange Board of India, ELSS funds are a type of equity funds that invest at least 80% of their assets in equity-linked investments. Note that investments in ELSS mutual funds are associated with a mandatory lock0in period of 3 years. This also happens to be one of the lowest lock-in tenures when compared to other tax-saving investments. As ELSS mutual funds invest majorly in equities, these mutual funds have a huge potential to generate significant returns over long run. Thus, ELSS tax saver mutual funds offer investors with dual benefits of capital appreciation and tax saving benefits.

Unit Linked Insurance Plan (ULIP)

As the name suggests, ULIPs offer the combined benefits of a life insurance policy and an investment option in a single fund. Basically, when you invest in ULIPs, a smart part is invested towards securing your life and remaining is allotted towards different types of investment basis your financial goals, risk profile, and investment horizon. Investors investing in ULIPs have the flexibility to switch between different types of funds around three to four times in a particular year.

Senior Citizen Savings Scheme (SCSS)

SCSS is a type of savings scheme which is backed by the government of India. Any Indian citizen can invest in SCSS provided that the investor is at least 60 years of age. The interest rates earned on these savings scheme is declared by the Indian government before the investor purchases these schemes. As compared to other savings schemes in India, SCSS offer comparatively higher interest rates to investors. The maturity tenure of senior citizen savings scheme is 5 years. However, you can choose to extend it further by three years.

These were some of the tax-saving investments that you can choose to add to your investment portfolio. Even though tax-saving investments are a great way to reduce one’s taxable income, one should not invest in these investment options with the sole purpose of saving tax. The tax-saving investments that you choose to invest in must align with your financial goals, risk profile, and investment horizon. Happy investing!

Sometimes working for someone else just doesn’t work with your personality. Some people are made to be the leaders of their own destiny. Becoming an entrepreneur is a journey, and for some people, it’s the spark that lights a fire.

If you’re someone that wants to make your own way in life, you may be seeking a way into a gig of your own. Take some time to start researching the way now, and check out a few tips and tricks to remember when going into business for yourself.

You need the right attitude

Succeeding on your own means that you will have to pull up your boot straps, and really dig into the nitty gritty. A successful entrepreneur works long hours.

You’ll have to dedicate a lot of your time to your goals to truly achieve independence. It’s crucial that you have the “go get ‘em” mindset from the very beginning.

Get a visual on your goals

You need an idea of where you want to go to start taking steps forward. If you want to run your own business, develop a solid business plan. If you plan to be a real estate agent, start researching the path you’ll need to take now.

You could start getting your creative thinking amped up by building a vision board. Put your mind to work envisioning what you want out of the next year of your life. Don’t go more than 5 years on the board, so you don’t lose focus.

Wake up and step out

You have to have the go-getter spirit to get things moving as an entrepreneur, and part of living in that mentality is taking literal steps towards your goals. Take chances, and get yourself out in the world of whatever kind of business or specialty you wish to operate within.

Spend time networking. Talk to people who know more about the industry than you do, and take notes. Being thorough in the knowledge you absorb will serve you well along the way to becoming a successful entrepreneur.

Wrangle your personal finances

Every entrepreneur has to have a little bit of money to invest in their passion, and it’s a good idea to start reframing your financial situation sooner than later. If you have several thousand in your savings account and an excellent credit score, then you’re already on the right track.

If that’s not the case, then you have some work to do. You’ll need a decent credit rating to get the funding you might need in the future. Start working on reshaping your financial situation, so money isn’t a hurdle to clear when you’re ready to start a business.

Never stop the learning process

Always work towards learning something new about your area of interest. Even when you’ve got a thriving business that’s been running successfully for years, you could still stand to learn a thing or two.

TAX SAVING INVESTMENTS UNDER 80C

Going Into Business For Yourself: Tips And Tricks

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