It's that time of the year again, the time to fill your taxes! Most of us rely on our parents, or a CA to figure out what needs to be done. And if you are one of those adults who do their own taxes, kudos to you! But for the rest of us, who are still pretty lost, we asked a few POPxo parents to give us the dirt of getting investments right before you turn 30.
1. Tiny Investments Go A Long Way
Invest in a life insurance, because the premium will be low at your age. Secondly, invest in a health insurance. Invest in a small SIP plan, because you can even make a monthly investment of Rs. 500 as well and equity pays off in the long term.
- Udayan Dravid, Entrepreneur
SPI - Systematic Investment Plan allows you to invest a fixed amount regularly into a mutual fund scheme, typically an equity mutual fund scheme.
2. Don't Forget Your Medical Expenses
An LIC policy is a great investment, you can make a yearly deposit with different maturity rates and via this, you can save your salary for later. A PPF should be your next investment, make a minimum investment of 5,000 per month, it is tax-free like the LIC investment. With whatever is left, you can show your medical expenses on paper as bills, which can always be from a pharmacist.
- Rupali Das, Proprietor
* PPF - Public Provident Fund scheme is a long-term investment option backed by the government of India which offers different investment rates and returns that are fully exempted from tax.
3. Save On Taxes
I always ask my daughter to invest in mutual funds. You could do a monthly Systematic Investment Plan where a nominal account will be deducted from your salary depending upon the plan you are comfortable with. There are some schemes that help you save tax as well! Also, a recurring deposit isn't a bad idea either.
- Anil Gupta, Businessman
4. Benefits Of Being A Woman
It needs to be understood that avoidance of taxes is not a crime, but evasion is. So there are ways to file your tax returns and take advantage of all legal provisions to save taxes by wisely investing your income in LIC schemes and a PPF scheme. As women, you can also save taxes by investing in real estate for anywhere in between 1.5-2 lakh per annum, by declaring a self-occupied house.
- Raghavendra B Siddhanti, Retired Professional
5. Categorise Your Salary
You should consider investing around 2 lakhs per annum depending on the possibility of saving, which will be Tax free as per the government scheme for women. You can also opt for a term life insurance of about 1 crore, which has an annual premium of Rs 10,000 - 12,000. Last but not the least, an NSC investment of Rs 15,000 - 20,000 per annum is also a smart option.
- M K Rustagi, CA & Financial Consultant
* NSC - National Savings Certificates is an Indian Government savings bond, primarily used small savings and income tax saving investments. It is a part of the postal savings system of Indian Postal Service.
Images - Giphy, Shutterstock
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