Save your taxes and grow your wealth
All of us resent paying our hard earned money to the government in the form of taxes, especially when we see that most of the money get wasted in unproductive ways. It is also true that paying taxes is one way of fulfilling our responsibilities towards the growth of our economy, which is especially relevant for a developing economy like ours. However, there are ways in which we can save our money and at the same time save on paying taxes to the government. These are ways in which we make the money available to the government for its use presently while we can get access to the funds after a few years.
These are the ways in which we can save on our taxes for the present:-
Invest in PPF
This is a sure shot way of saving on your taxes. Also, it is government money and you can always be sure of getting it back. The interest you earn on it is assured and not subject to market conditions.
Invest in ELSS
This is an equity diversified fund and investors enjoy both the benefits of capital appreciation, as well as tax benefits.
Medical insurance (premium)
It is not only the need of the hour from a tax savings perspective but also we must remember that medical emergencies can arise anytime these days. And good medical treatment these days is a very expensive affair.
It is another great way to invest in and build your wealth and save on your taxes at the same time. Start early and invest in a property and save taxes on the EMIs you pay towards your loan. This is a double whammy—owning property and saving taxes. What better way to grow your wealth!.
Making charitable donations
Earn some goodwill, contribute towards your society and also save taxes. Is there a better way to grow your wealth than to help others lead a better life?
Studying more is also a brilliant way to save taxes. Soon in your career you feel the need for enhancing your skills for which going for higher study seems a very attractive proposition, for which you will need funds. Instead of spending all your savings on your education, taking an education loan not only gets you your desired degree but also helps you save money on your taxes. After all, knowledge is the best form of wealth, isn’t it?
There are multiple ways to save taxes and grow your wealth. Choose what suits you the best.