Jain says deduction under 80C should be treated as more than just a tax-saving exercise. "Many people just dump their money in insurance or PPF, without taking into account returns and their future cash-flow requirements. That's a bad strategy. Treat the leeway under 80C as a portfolio of investments with the desired level of liquidity," he says.
Other sections can be advantageous to you if you are eligible for them. Under Section 80D, for example, deduction of medical insurance premium has been enhanced this year by Rs 5,000 to Rs 15,000 (to Rs 20,000 for senior citizens).
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