It is that time of the year when people are worried about completing their investments and working out ways to save tax. It is very important to keep your cool and not invest in wrong things. Investment according to me is a very sensitive issue and should be done after good analysis and study. It is a decision that should not be taken hastily.
I am not very good when it comes to investment but I know a few things like the rule of thumb. For one I know that the first investment should be a Life Insurance Policy and the next best thing is a Public Provident Fund account. These are the best investments to the best of my knowledge and also come under Section 80 C of the Income Tax Act and are exempted from Income Tax.
It is an advice to the people who are in 10% tax bracket that they should refrain from making investments just to save tax. I personally believe that it is better to pay tax than to pay 10 times the amount to save it. Also if you invest in a tax saver scheme the minimum locking period is 3 years. So there is no sense in locking a healthy sum of money for a minimum period of 3 years. Liquid money is important and it always helps if you have fluid money in your hands. So what are you thinking it is high time now the last date for submitting the proofs is nearing.
I have tried my hand at a completely alien subject and I may have got everything horribly wrong. So if any economic pandit is by any chance reading this post please correct me if I am wrong so that I can also learn a better way to invest. Although I am done with the investments for this year that would help me in the subsequent years.
I am not very good when it comes to investment but I know a few things like the rule of thumb. For one I know that the first investment should be a Life Insurance Policy and the next best thing is a Public Provident Fund account. These are the best investments to the best of my knowledge and also come under Section 80 C of the Income Tax Act and are exempted from Income Tax. It is an advice to the people who are in 10% tax bracket that they should refrain from making investments just to save tax. I personally believe that it is better to pay tax than to pay 10 times the amount to save it. Also if you invest in a tax saver scheme the minimum locking period is 3 years. So there is no sense in locking a healthy sum of money for a minimum period of 3 years. Liquid money is important and it always helps if you have fluid money in your hands. So what are you thinking it is high time now the last date for submitting the proofs is nearing.
I have tried my hand at a completely alien subject and I may have got everything horribly wrong. So if any economic pandit is by any chance reading this post please correct me if I am wrong so that I can also learn a better way to invest. Although I am done with the investments for this year that would help me in the subsequent years.
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