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Approaching an optimized tax solution

Tax Solution

The run for submitting the proofs to save tax starts the moment you receive a mail from your HR on the deadline. That is the time one realizes that there is more that could have been done to save tax. Inculcating this discipline is not the onetime activity but a phenomenon that needs to repeat itself and it should spark immediately with the start of a new financial year.

Taxpayers get jumbled with questions like how much can I save, where do I invest, is it worth investing just to save taxes and the list could be endless. The subject becomes a matter of pain when one needs to chase banker, advisor, CA etc to help them in one or the other aspect of the entire tax planning, investing and filing cycle.

Avoiding tax is no good option with every individual being a part of the financial inclusion. With a rightful approach, there is enough room for the value that can be added at each phase of planning, execution and tax filing when these pieces are interlinked.

Build a goal around saving tax
Saved tax increases the real income in your hand. This should be looked as an investment avenue that will help you to achieve some of the financial aspiration like retirement than only as a measure to save tax for the year. For an individual who is 30 years can accumulate about 1 crore by the age of 60 years purely by investing 1.5 lakhs in PPF for tax saving. The same can earn up to 4.3 crores in some of the best tax saving funds. A dual benefit of saving on tax and earning interest and dividends from the same makes this a wealth creator move.

One need to plan in detail to understand the other avenues where the tax can be saved and further grow your real wealth.

Dodging biases
With no surprises, a mutual fund advisor advises only mutual fund for saving tax and other advisors follows the suit in their respective category. The investor gets trapped with inappropriate advice and in trade, the big picture of holistic tax savings is completely lost. There are more avenues to save taxes beyond most followed sections like 80C and 80D. The element of HRA, the decision on continuity of housing loan, NPS are few options that can help you save a significant amount tax, typically not advised by an advisor whose core interest is to sell a defined product. Explore avenues like exemption on interest on the second property, taking indexed benefit on the sale of long-term assets, RGESS for the 1st time investor etc.

Getting into an approach that is customer centric helps the user to save more and in turn invest more with the advisor who helps in 360-degree evaluation of the tax saving options.

Robo solution
Do not worry about missing a critical timeline on your tax aspects; be assured of the advisory you get is customized for your requirement, be in control of all the investments you do to save tax and keep monitoring it on regular basis, tired of chasing multiple people for planning, investment, filing etc.

What seems difficult to be done manually, technology comes as an answer. Online platforms have a cutting edge that serves you multi-fold purposes of the do-it yourself platform, advising you on an unbiased grounds and integrate all the related activities at one place. It not only offers a comprehensive but a detailed solution on optimizing your tax, advised you the appropriate avenues to invest for saving tax, allows a platform that helps you to invest in multi-products and finally monitors the investments done by you to keep you in control of the entire process.

The Core is advisoryIt is critical to shift the entire focus of taxrelated activities and keep a true blue advisory at the core. Often we see tax advisory being promoted as saving a defined amount on the tax payable. One must understand that tax saving is different from one individual to another. It is a factor of age, income earned and the components of the income. For instance, in individual earning 4.5 lakhs from a salary income will have the option to save only 2.5 lakhs and same can be spread over 1.5 lakhs in 80C and 50,000 from other options like buying a medical plan or investing in NPS. At the same time, an individual in the higher income bucket and having more sources of income such as house property will be able to garner more on tax saving options like HRA, LTA, home loan interest, opting for other tax-free allowance etc.

Advisory plays a significant role in determining “more” element in terms of optimizing tax and getting the money parked or invested in the appropriate instruments in the correct proportion.

An advisor with skills, industry knowledge with a blend of modern day technology will help the taxpayer see the opportunities and will be a constant endeavour to handhold the client on various aspects of a complete tax solution.

-Mr. Dinesh Rohira, Founder CEO,

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