Some things are best enjoyed seasonal. Tax planning need not be one of them

Each season brings with it something different.

Long drives amidst the rains with a stop for snacks is something one would enjoy typically during the monsoon. Or the joy of ice-creams in summers. Seasonal treats are, indeed, special.

A lot of us, though, have also made tax planning a seasonal affair.

When you think of tax planning and its related investments only when the time for paying taxes is here, you have made it a seasonal affair – the season being the end of a financial year, that is the March quarter.

Here’s why you could instead be doing it all through the year - 

• The amount you plan to invest to save taxes will be deducted all through the year, instead of a lumpsum payment
• Planning early will give you the liberty of carefully choosing tax-saving instruments based on what suits you the best

The Kotak ELSS Tax Saver Fund  is something you can consider!

• Helps you save taxes under the Section 80/C of the Income Tax Act^
• Aims to combine tax saving with  long term capital growth
• Investing through an SIP can ensure systematic, monthly deductions
• Has  generated returns  of nearly 12% since its inception in 2005*
• Comes with a mandatory three-year lock-in period

We have enough reasons to plan our taxes all through the year, instead of making it a seasonal affair! Do you?

 

Disclaimers:

*Returns are for Kotak Tax Saver Fund – Regular Plan (Growth Option). Returns >= 1 year:  CAGR (Compounded Annualised Growth Rate). Scheme inception date is November 23, 2005. Data as of 30th June 2022. Past performance may or may not be sustained in future. Please refer below for detailed performance-related disclosures.

^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.