Contact Us
For NRI Customers
(To Buy a Policy)
(If you're our existing customer)
For Online Policy Purchase
(New and Ongoing Applications)
Branch Locator
For Existing Customers
(Issued Policy)
Fund Performance Check
Login
Customers
Employees
Partner
Why January Is Important Month for Tax saving
The taxation system in India is an extensive platform for revenue generation and the rules and regulations in place are very elaborate. Taxation forms the backbone of the economy and acts as the primary source of revenue generation for the country. In India, both-the Central as well as State governments levy taxes with constitutionally defined duties and assigned roles. While the State governments are responsible for collection of agricultural taxes, state excise, VAT (Value Added Tax) etc. the Central government is responsible for collection of Income Tax, Customs duty, Goods and Services Tax, etc. In India, taxes are broadly defined into two categories direct and indirect. Direct taxes are the taxes that are liable to be paid directly by the individuals, HUFs (Hindu Undivided Families), commercial and corporate bodies etc. These taxes are therefore, paid directly to the government by the mentioned entities and include income tax, corporation tax, wealth tax etc. The governing body for direct taxation in India is the CBDT (Central Board of Direct Taxes).
January being the first month of the year is the exact beginning point of all financial transactions that are then carried forward into the year. It is like a fresh beginning for financial-resource building and the reserves that you intend to create for meeting the expectations. Starting from the beginning of the year will give you a leverage that can be consolidated further as you head on to the details of the monetary planning. This includes the important part of tax-savings as well. Any investment choice or a decision that you take assumes significant implications only when there are tax-saving strategies in place. This is why taking a timely decision is very important so that the factor of time stays in your favour and you can avoid last minute tax-related hassles.
There are several advantages of early investments that you make in the beginning of the year:
- There are a lot of options available in the market where you can invest your money and choose the right kind of tax saving vehicle for building up your financial corpus. You could save more taxes from investments like mutual funds or ULIPs and reap additional benefits on the returns on your investment.
- Sections 80C and 10D of the Income Tax Act define and enlist the tax benefits on payable premiums and the earnest returns on your investment, respectively. Therefore, you get to choose viable options like investing in ELSS or Equity-Linked Savings Scheme, which is a mutual fund that gives you tax-benefits. In the process of investment, you get to avoid loads of paperwork or unwanted documentation, if you start early in the year.
- Starting early makes you reap the benefits of SIP or Systematic Investment Plan, thereby guaranteeing that regular and nominal amounts are set aside for the investment purposes and that in case of non-availability of funds, there is no requirement of any lump-sum payments as such.
HDFC Life presents various investment and saving plans that offer multiple avenues to help you save and grow your money.
Term Plan Articles
Investment Articles
Savings Articles
Life Insurance Articles
Tax Articles
Retirement Articles
ULIP Articles
Subscribe to get the latest articles directly in your inbox
Health Plans Articles
Child Plans Articles
Popular Calculators
Insurance Advisor Articles
Francis Rodrigues
Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.
Written By:
Here's all you should know about life insurance.
We help you to make informed insurance decisions for a lifetime.
HDFC Life
Reviewed by Life Insurance Experts
HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER
We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.
Popular Searches
- Term Insurance Calculator
- Investment Plans
- Investment Calculator
- Investment for Beginners
- Best Short Term Investments
- Best Long Term Investments
- 5 year Investment Plan
- savings plan
- ulip plan
- retirement plans
- health plans
- child insurance plans
- group insurance plans
- income tax calculator
- bmi calculator
- compound interest calculator
- income tax slab
- Income Tax Return
- what is term insurance
- Ulip vs SIP
- tax planning for salaried employees
- HRA Calculator
- Annuity From NPS
- Retirement Calculator
- Pension Calculator
- nps vs ppf
- short term investment plans
- safest investment options
- one time investment plans
- types of investments
- best investment options
- best investment options in India
- Term Insurance for Housewife
- Money Back Policy
- 1 Crore Term Insurance
- life Insurance policy
- NPS Calculator
- Savings Calculator
- life Insurance
- Gratuity Calculator
- Zero Cost Term Insurance
- critical illness insurance
- itc claim
- deductions under 80C
- section 80d
- Whole Life Insurance
- benefits of term insurance
- types of life insurance
- types of term insurance
- Benefits of Life Insurance
- Endowment Policy
- Term Insurance for NRI
- Term Insurance for Women
- Term Insurance for Self Employed
- Benefits of Health Insurance
- Health Insurance for Senior Citizens
- Health Insurance for NRI
- Best Term Insurance Plan for 1 Crore
- personal accident insurance
- Annuity Calculator
- Life Insurance Calculator
- Term Insurance Comparison
- Digital Life Insurance
- Child Education Planner