Taxation is an inevitable part of any persons financial profile. It is that definite hole in any persons bucket of wealth that keeps continuously draining away wealth. It is essential for every person to keep a constant watch over this hole in the bucket and ensure that the drain levels are under control. We at Deontic help you keep a constant vigil over this aspect and help you minimize the impact of this drain over your entire bucket of wealth.
Taxation is a very dynamic subject. The Government draws it budget every year and is always considering ways and means to enhance tax collections. In such a scenario it is essential that we study the impact of taxation on your wealth on an ongoing basis and develop a definite long term strategy to approach the subject matter.
We at Deontic closely monitor the economic environment and constantly develop strategies to approach all your individual investments from a tax reduction perspective. The impact of each investment on you total wealth is stressed upon to ensure that the total impact of taxation on your entire wealth is minimized It is often seen that most of the people approach taxation at the last
moment and in a rush to reduce the impact of tax make hasty and unplanned investment decisions. Such investments definitely result in short term tax savings but their impact on long term wealth creation is a question to be addressed. With a little bit of investments planning one can strike a balance in such a manner that the investments made can save taxes and at the same time work towards creation of long term wealth.
Some of the areas of taxation that can be pondered Over are as under:
- Utilise the entire Section 80C deduction – A major component of this section remains unutilized by a majority of tax payers.
- Think beyond Section 80C – There are a lot of tax benefits available beyond Section 80C that offer similar deduction benefits from Income Tax.
- Restructure the salary – The salary structure can be restructured to reduce the impact of taxation and enhance the total take home component for the same level of pay.
- Claim tax benefits on house rent paid – Provisions pertaining to claiming for house rent paid are seldom completely understood and applied by most of the tax payers.
- Opt for a joint home loan – The provisions pertaining to deductions on home loans can be optimized by a little bit of pre-planning and availing of joint home loans.Every rupee saved from taxes is an additional income in your hands and when this additional savings is invested judiciously can have a huge compounded effect on your retirement valuations.