Tax solution needs differ from person to person and is determined by factors like income, needs, goals and priorities. It is not as simple as it appears. The biggest fallacy would be to adopt the universal methods of tax solution. Tax solution strategy that everyone adopts is based on a simple but skewed thinking of reducing tax liability…at any cost. Inevitably, though tax liability is reduced one finds himself / herself invested in wrong products or have severe cashflow strain.
Tax solution is an excellent benefit provided by the tax system of the country and must be utilised in totality. However while doing so one needs to assess and plan tax in a manner that benefits income, needs, broad financial plan and personal financial outlook in years to come. A tax solution investment may be used to manage income tax, insurance, investment & retirement goals all in a single shot and without exceeding investable surplus.
There is very limited tax solution that can be done for salaried individuals. Often there is not much that can be done for people in a higher income bracket as their provident fund itself pretty much takes care of significant portion of benefits available.
There is however quite a lot that can be done for self employed individuals viz:Reviewing current tax solution & management efficacy