I was just working on the tax saving ideas for this current financial year. Then the above question came to my mind. ie. Do I really need to make extra investments just to save tax?
Ok. I shall explain. (numbers just representative)
Suppose myself is a doctor/medical representative. Annual Income: 3,84,000. I guess with this annual income i should fall in the 10% tax slab. Adding up all the insurance premium payments, mutual funds SIP payments(tax saving SIPs), medical insurance premium payments etc it comes to 84,000 only, for the current financial year. I meant, all the deuctions I can make is 84,000 only. And if I want to save tax for the remaining 1,00,000 , ( I guess any income above 2,00,000 is taxable) I need to invest in PPF or NSCs etc. So that I can save 10,000 (ie. tax on 1,00,000).
But if I do overtime for few days, that will fetch me 10,000 in my hands.(To be frank and fair, this overtime payment will not be counted for tax.)
So i was just thiniking, which one is better? Work over time for few days and get that 10,000 directly to your hand or invest 1,00,000 in NSCs or PPF and save tax?
ok.Im sharing this here just to know whether im wrong in any of the calculation. Kindly help.