A better way to save tax

Dear Kundapur Govardhana Kini, It's that same time of the year when 'tax saving' stares out of the calendar. And when it does, every year we approach it in the same old way. We look at sections like 80C and 80 D, figure out what qualifies for deductions and proceed to make those savings and investments. This year we have a better idea for you - where you not only save tax, but also align your investments to larger needs placed by your life's goals. Want to know how to do it? It's actually as simple as what we all did in school as children- that old exercise called `Match the Following'- where you match a visual to a word, an answer to a question and so on. So how do you do this in the context of tax planning or better still, financial planning for life's goals? Simply start by identifying a goal and then match the most appropriate tax saving instrument for that goal. For example: For your child's future education you can look at Unit Linked Child Plans. Click here for answers. Click here to know more about these investments.   Are you utilising your complete tax limit under Section 80D (medical insurance)?- To know this, please put in your current premiums for medical insurance - click here.   Most of us just deduct our historic investments and other statutory deductions and try and make up for what's left of the Rs. 1 lakh limit we have under Section 80C. But it's better to go beyond just the tax saving task, to choose and make investments that also work for your goals. Now, how should you do this? Well, simply by using our calculators to assess what you need. Just click here to start. And while you are at it, there are some important pointers worth bearing in mind Over a period of time your tax saving investment portfolio should align with your goals You may have to increase, decrease or introduce new investments into your current portfolio Having done that you should also re-evaluate your investments atleast every 2 years to see if you are on course And finally, spread your investment through the year. If most of your annual payments   come up in one month, a cash shortage may compel you to move off course Just to second-guess a question in your mind - all this is understood. But where and how do I make these investments? The answer is simple. Just click here to get into the relevant section of ICICIdirect.com where all is available. Want to talk to someone? Just walk into the nearest ICICIdirect store. Click here to locate one. Maybe you also need help in filing returns? In that case, you must turn to ICICIdirect Tax Services - available on ICICIdirect.com. Just click here to get there. You must make full use of tax planning but remember that you must never restrict yourself to tax planning limits. After all, we do not cap our life aspirations, why cap our investment to tax planning limits. Best regards, Vineet Arora Head - Products & Distribution   To unsubscribe, please click here Disclaimer