Tax planning should complement—not replace—your overall financial plan. Effective tax-saving investments help you reduce current tax liability while building long-term wealth. Here are popular options and how to evaluate them.
Match the instrument to your objective: choose ELSS for long-term wealth with tax benefit, PPF for guaranteed, risk-free growth, and term insurance for pure protection. Consider liquidity, lock-in, expected returns, and costs.
Buying tax instruments only to save tax rather than meet goals, ignoring charges, or skipping adequate insurance. Tax planning should be systematic and goal-oriented.
Conclusion: Combine instruments to achieve a balance of growth, safety, and liquidity while reducing tax liability.
