Tax & investment tips for young earners
SummaryTax planning should be part of overall financial planning and not the other way round
Ramesh Verma, 28, has his tax planning game on point. He has fully utilized the ₹1.5 lakh 80C limit, makes ₹50,000 contribution to National Pension Scheme (NPS) for deduction under Section 80CCD(1B) and is repaying an education loan. But ask him about his financial goals or an emergency fund and Verma falls short of words. “I have little liquid savings but with my current tax-saving plan my taxable income is below ₹5 lakh exemption limit and I don’t have to pay any tax," he said.