TAX PLANNING AND SAVING

TAX AWARENESS(THE KEY)

Bhaskar Harendra NarulaRA1803A09

WHY TAX?

The Basic Reason Behind It….

UNWILLINGNESS TOWARS TAX

CAUSES - :

-> Tax Evasion

-> Speculate Investment

WHAT IS TAX EVASION?

Tax Evasion is practiced mostly and very widely followed in India.In Today’s governance of highly defined and abide laws none can dare to run from tax and never paying it but corporate have find another method of offending the tax laws that is tax evasion.

In Tax Evasion the liability of the tax payer is diverted. The tax payer never shows all of his white income or taxable income and pays less of tax. People of middle class and higher classes follow this. This Tax Evasion.

SPECULATE INVESTMENT

Speculate Investment is basically a rough investment technique. The people who are unwilling to pay large amounts of tax sometimes who don’t have proper knowledge regarding investment plans invest in any plan in a hurry to avoid tax and gain tax benefits under section (80c-80u).

Income Tax Act,1961 provides certain deductions on various investment

plans in order to provoke investment in masses. Sometimes this results in wrong investment. This is speculation.

WAYS OF SAVING TAX

-> Investment In Insurances.-> Investment In Stocks-> Retirement Planning-> Agricultural Income-> Gratuities payable to you-> VRS

INVESTMENT IN INSURANCES-> Investing in Life Insurance - :

1) Life Term Insurance or Pure Insurance2) Pure Endowment Policy3) Endowment Policy4) Whole Life Insurance

-> Investing in Health Insurance - :

1) Mediclaim Policy2) Group Mediclaim Policy3) Accident Insurance4) Long Term Care Insurance

INVESTMENT IN STOCKS

What Are Stocks? Stocks are basically shared outputs floated out by the Company or any organization when they are in need of capital For expansion or investment.

Classification Of Stocks

-> Blue Chip Companies-> Income Stock-> Growth Stock-> Cyclic Stock-> Mid Cap Stock-> Small Cap Stock-> Penny Stock-> Defensive Stock

Types Of Shares To Invest In

DebenturesProffered SharesEquity Shares

DEBUNTURES

For Medium Term Investment Acknowledgement of the debt Complete Security Redeemed principal Safe and Secure Investment Secured Creditor Company’s with a good position can releases debuntures

PROFERRED SHARES

Dividend ROI is less than that of DebenturesCan be converted to equity shares

EQUITY SHARES

Long Term InvestmentNo Dividend, unless left out.Residual ProfitsBonus SharesRight to attend all board journal annual

meetings.Right to voteOwners of the company, in a way.

RETIREMENT PLANNING

Retirement Planning means planning your after retirement financial status and conditions. How to manage you expenses at the time! Retirement Planning involves : -

1. Applying for a pension in a company your are working in. 2. Gratuity Planning. 3. Investing in retirement policies.

AGRICULTURAL INCOMES

The money you derive by investing in land for agriculture is un taxable.

If you are encouraging agriculture in any form than Under Section 80(d) of the INCOME TAX,1961 you will exempted by 55,000.

GRATUITY PAYABLE

Always insist for gratuity…Why?Because They are un-taxable.

Gratuity is a generalized term used for the money provided to the employee at the time of Voluntary (VRS) or on term retirement.This money is not taxable.

VOLUNTARY RETIREMENT SCHEME

Under this scheme one is made legible to take retirement any time from the service he has been providing. There is no boundation. One is eligible for the gratuity and any pension if payable.

This money is not taxable.

Any Queries?

THANK YOU