Friday, 24 October 2014

Ease up tax planing and facilitate savings

A detailed document showing the available avenues to save for future and/or gain tax benefits - along with the maximum possible limits for each income category - is required to be created. And, then reasonably substantial awareness needs to be spread about such a facility.

This seems to have not been done by the predecessors as well. Let us endeavour to make it a practice of releasing this document on Ministry of Finance as well as eFileIT website, as soon as the Union budget is officially out.

As of now, a majority of our income tax payers conduct either of these three:
1. Take a deep-dive in the oceans of the Internet and search for such information, or engage a CA
2. Scramble to invest haphazardly beginning January in the last quarter, when the finance team at their office asks for investment documents, and at tines make an un-informed decision
3. Simply pay up the higher tax due to lack of information, while not adding to their future savings as well

Creating this document would generate dual benefits:
- Improve financial inclusion 
- Optimise saving reserves

After releasing this document, although users will still make their own decision or may engage a CA as necessary. However, at least a defined starting point will be available.

On the lighter side, if as considered earlier when tax break is given for some time, this document will temporarily not be required at all.

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