What Exactly Do We Mean by Saving Income Tax

What exactly do we mean by “Save Taxes”?

On one hand, we want you to save money in taxes and on the other, we’re asking you to spend money and buy an insurance plan! Let’s understand how this works.

It’s that time of the year when everyone – Insurance companies, your company, your dad, your friend’s dad, your ex-girlfriend’s aunt’s third cousin’s fourth son tells you to “Save Tax!!” Before we start looking for Chartered Accountants or anyone who remotely resembles one, let’s understand what we mean when we say something like, “You can save taxes by buying this totally amazing insurance plan which gives you returns and a life cover!!” phew… *catches breath*

You would argue that on one hand, we want you to save money in taxes and on the other, we’re asking you to spend money and buy an insurance plan!?! Ye kaisi naa-insaafi hai!

Now let’s understand how this works, we all have to pay a certain amount in income tax on our taxable income (subtract tax-free income limit from your actual income). The income tax gets deducted from your income right before the financial year ends. So, don’t be mad at the HR because you are getting paid less in Jan-Feb-March, it’s the income tax which is getting cut. But if you invest your money in plans/schemes which offer tax benefits, and declare your investments with proper proofs in the ITR document, you can claim and get back some of the tax which you’ve already paid.

Which brings us back to us saying things like, “Get tax benefits”, “Tax saving made simple with this savings + life cover plan”, “Start your tax planning today” and “You can save taxes by buying this totally amazing insurance plan which gives you returns and a life cover!” What we mean is, with this plan, you can save money, get returns on the money you save, get a life cover and you don’t have to pay taxes for the premiums you pay and the maturity benefit you get from this plan! And, you can start saving with just Rs.1000/month. It also gives an option to get returns in only 5 years.

Did we forget to tell you the name of the plan? It is, *drumroll* Edelweiss Tokio Life – Wealth Secure+