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nformation provided on this newsletter has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. and its affiliates, information providers or content providers, shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this newsletter, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information. , its affiliates, information providers and content providers shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this newsletter.
The best time to start investing is today You are different and so are your needs Why your returns are not the same as the market’s return? Understanding Taxation in Mutual Fund Investments
Most individuals begin tax planning when the due date for filing income tax return is around the corner. However, it is prudent to start your tax planning earlier as it gives you more time to make a good estimate of your income and gains.
One easy way to calculate your tax liability is to print the previous year’s return and write your estimate of current year’s numbers. This can be a ballpark estimate, and once you write the new numbers, you can use them to estimate your taxable income and then determine what tax bracket your income falls into.

Plan your investments

To reduce your tax liability, you can take advantage of various tax deductions and exemptions. For instance, if your taxable income is expected to be `8 lakh at the end of the financial year, then you can start investing in tax-saving investments. From a tax planning standpoint, there are several tax-saving options offering deductions under Section 80C, Section 80D, etc. Additionally, expenses such as interest paid on home loan, repayment of the principal amount of a home loan, tuition fees for children can be claimed as deduction from gross taxable income thereby reducing your tax liability. You can take advantage of Section 80C by investing in ELSS, PPF, NSC, etc. However, the most efficient way to take advantage of this section is to invest in term insurance and Unit-linked insurance plans (Ulips). They offer tax benefits under Section 80C for premiums paid in the given financial year. But, most importantly, the returns and the maturity benefits that you receive are completely tax-free under section 10 (10D) of I-T Act. Remember that early planning of investments will give you more time to select the most efficient option which can give you higher returns, more liquidity, and most importantly, will help you to accomplish your goals in a better way. For a smooth tax filing process, all your tax-related documents ought to be kept securely. If you are spending on things for which you can claim deductions such as medical bills and travel bills, keep receipts of all such transactions handy. This won’t just accelerate your filing process, yet additionally, diminish the odds of missed details and errors.

File ITR well in advance

To avoid any mistakes, it is best to file your income tax returns well before the due date as any mistake might result in a notice from the I-T department. Moreover, procrastinating tax-filing till the last minute could also create problems, especially in case of transnational glitches or technical errors. Therefore, file your tax in advance and be prepared with all relevant documents such as salary slips, eligible deductions, and investment documents to ensure a smooth filing process. Early tax planning early will allow you to think better and make wise decisions with respect to investments. Remember, choosing the right tax-saving investments can not only help you reduce your tax liability but also meet your set financial goals.

Much like all insurance products, life insurance makes your life easy by taking the stress out that stems from the unpredictability of life. But when it actually comes to taking a policy, most investors get confused with the overload of information and overwhelmed with the premium amount and want to pay as little as possible. If the cost associated with the insurance premiums has negatively affected your decision of buying life insurance premium, then tips below might help you find different ways to lower your life insurance premiums without burning a hole in your pocket.

Start young

It goes without saying, the younger you are the lesser the cost of your life insurance premium. Starting at a young age is the key to lowering your life insurance premium because your age has a direct impact on your rate of premium. Simply put, if you take your policy as early as possible you will qualify for a cheaper premium versus when you’re older as there’s less risk associated with a young policyholder. The older you get, higher are the premiums being charged. To save extra cost on your premiums, it is highly advisable to buy a policy in your early 20s.

Healthy lifestyle

The irony is that the time you would most need a life insurance policy- on the heels of your health issues, would be a time you would least get it or the premiums would be higher. Insurance companies get a medical check-up done before issuing you a policy which reveals your health conditions. Basis which insurance companies decide the rate of premium. This is because insurers are well aware of life-threatening habits and tend to charge a higher amount on the basis of that.

Payment mode

While buying a life insurance policy, you get the flexibility of paying the premium in a number of ways such as annually, half-yearly or monthly premiums. Alternatively, the premiums can also be paid as lump sum. In case, you choose a monthly premium as your mode of premium payment and skip on the dates when it comes to making the monthly premium on the due date, then there are higher chances that your policy will lapse. So make sure you do not miss one.

Financial freedom means different things to different people. It is all about having the freedom to make choices, not based on what your bank balance dictates but based on what your heart desires. Financial freedom is something that will not happen overnight; rather it is a journey. Each day, through the choices you make, either you move closer or farther from your financial freedom. Here are five steps which you can start implementing now, so that you can achieve financial freedom in the near future.

Talk to your partner

Most couples never discuss their financial goals. If you are married or in a relationship, talk to your spouse about what you want to accomplish. Have a brief conversation about your financial goals and what kind of lifestyle you want, etc. Discuss and take important actions such as paying debt, gaining control over spending, saving for children education, retirement, tax planning, early retirement, and the like.

Make a budget and adhere

Budgeting is a basic tool but often overlooked by many. If you keep on spending more than what you earn, definitely you are not moving towards financial freedom. A budget lays out all your expenses and outlines how much you can afford to allocate for each expense. If you are spending more than what you have or earn, a budget will spot this so that you will know where you should cut back.

Pay back your debts

Paying off debt should be one of your priorities. Having debt just weighs you down and prevents you from achieving financial freedom. There are multiple techniques to pay off your debt ranging from snowball method to avalanche method. Choose the best which works for your current financial situation. Also look for ways and means to decrease your expenses and redirect those savings towards paying back your debt. Expediting your debt re-payment is another way to increase your income.

Create an emergency fund

Emergencies such as illness, job loss, expensive home or car repairs can happen anytime and when that time comes, you want to make sure you have enough liquid cash to navigate through it. If you do not have an emergency fund, chances are high that you will turn to credit. This could spiral into financial difficulties down the road.

Adequate insurance coverage 

Having an adequate insurance coverage is very important as the future is always unpredictable. Accidents happen, work injuries occur, and natural disaster can easily cause thousands of rupees of damage to your home. To prevent any of these circumstances, ensure that you have enough insurance for your home and the lifestyle you lead.

Financial freedom does not necessarily mean retirement. It is being able to work at your pace, doing things that you enjoy and living where you and your family are happiest. One can achieve the same by following the above steps.
Please mark all your queries / responses to
Information provided on this newsletter has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. and its affiliates, information providers or content providers, shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this newsletter, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information. , its affiliates, information providers and content providers shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this newsletter.