Things to remember while planning your Year End Taxes

FY 2011-12 is about to end. Rajiv, like most of us, is busy with year-end tax planning. Although, he decided to invest in ELSS, a call from his insurance agent about the new product, which will give him insurance benefit along with tax saving, changed his mind. After a brief conversation Rajiv decided to go with the Insurance product which will help him to save tax every year.

We tend to make such mistakes when we plan for tax saving at the end of the financial year. Without doing any due diligence on the investment instruments and ignoring our own requirements, we fall prey to the misleading advice.

Here are few tips which, individuals like Rajiv, should remember while planning for tax saving at the last minute:

1. Insurance is for Insurance

Insurance gives a financial protection to your loved ones against a loss arising out of happening of a contingent event. The amount of insurance to buy depends on one