Are you a Tax Saver or Tax Investor?

Caution - Request readers to consider this write up seriously if they don't want to feel bad looking at their march month Salary statements.

             Being one of them, I believe that the salaried class are one of the most affected by the tax system of this country. I say so purely on basis of  tax paid-benefits accrued "Trade off". One thing is we dont "pay" tax, Govt snatches it from us. We basically pay taxes on everything we consume, you name them - Milk, basic groceries like Rice, wheat, dals etc., Bike,Car, clothes, food, entertainment, shit (corporation tax). On top of all this Tax, The government does not allow the Salaried man to declare his Income and pay tax on it as is the case with Professionals (though we pay Professional tax -  credits to PC sir) but simply asks the employer to deduct it from our pay and pass it on them directly. So "Unfair" & "Undemocratic" ! You never ask us, thats not democracy! Having paid the taxes, in trade off, we never get anything in return like Clean water/Good Education/Healthcare/Roads anything? Nothing at all, All goes into pockets of corrupt officials. I suggested to a freind that we crusade against corruption, He said forget it, They will next put a Corruption tax and use that money to prove you are anti-indian. Hence i decided to do something better & useful (hopefully)

All right that your money is snatched from you is not where the problem ends, it extends to, sometimes, in our disablity to recognize some simple but excellent ways to save our hard earned monies. I will now attempt to help you recognize one such way. Section 80C.

Before you proceed to read this, dont waste you time - 
1. If your income is less than 6 lakhs (Your tax outogo is insignificant anyways, Spend time trying to improve your skills instead. When you earn more, Do come back!)
2. If you already have home loan ( Can person on dialysis donate blood? - trying to be funny:P )
3. If you are one of those guys who says - I'm patriotic, hence I pay tax on "Salary".
4. If you never dreamt of being wealthy enough not to be called Poor.

Others Please continue -

80C lets you invest in basket of Financial instruments & provides Tax Ememption on such invested amount (Need not pay tax). The Options under 80C are Life Insurance Premium, 5 Year Tax Saving Bond(Post Office & Bank FDs), Repayment of Home loan Principal, Contribution to Pension Fund (PF), Medical Insurance Premium. Out of these Options, PF is automatic since your employer will hold it in your Salary payment, both Medical Insurance Premium & Home loan are need based. The "ACTUAL" Options left are LIC/Insurance Premiums, Tax Saving bonds, NPS & Equity Linked Saving Scheme.

Let us do a Prudent comparison of all these options -

Topics to Ponder	Life Insurance Policies	ELSS	NPS	Tax Saving Bonds	PPF	Home Loan
Lock in Period	8 Years to 25 Years	3 Years	Life Term - Read our Blog "NPS - Non Performing Saving!" for More	5 Years	15	Automatic Need not debate. But Read our Blog  - "Unlimited Period Offer - Home "Loans" @ 50% Discount" to plan Better
Returns	~7%.	Market Based, Avg returns - 16%	Market Based, Avg returns - 9%	7.25%	7.80%
Wealth Creator	No, Returns hardly beat Inflation	Yes, Returns in excess of Inflation helps in create Wealth in long term	No, Returns hardly beat Inflation	No, Returns hardly beat Inflation	No, Returns hardly beat Inflation
Returns Tax Free ?	Tax Free (Conditions apply!)	Tax Free	Taxable.	Interest is Taxable	Tax free
Risks	Perceived Risk free	Involves Market risks	Govt backed (with new Amendments every now and then)	Risk Free (insured upto 1 Lac)	Risk free

An wise Saver will choose a financial instrument that  - 

1. Has Minimum Lock in Period
2. Gives Superior Returns

3. The returns earned are tax free
3. Helps in Wealth Creation

  We hope that this write up helps the readers migrate from being a "Tax Saver" to being a "Tax Investor". 

Note - Our country is tipped to be the fastest growing economy in the world and is expected to be Economy equal to size of US/China, it is only fair that as Citizens of this country, We participate in this wonderful story and reap benefits of the same. Equities are best route to be part of this story and to grow our wealth.

For any financial Planning queries, Please contact Droplet Advisory @861 017 2018/824 836 9621or write an email to Dropletadvisory@gmail.com