I firmly believe in the following statement, "A penny saved is a penny earned." Most of them are busy in their professional life and have no or little time to manage their tax. The last-minute rush to reduce the tax is based on interactions with people in their social circle and tax savings advisory from the internet. They mostly end up investing on an ad-hoc basis without aligning to their goals and risk profile.
The ideal way to approach the tax is, first and foremost ensure the investments are in line with the goals. In the process, one can leverage the tax benefit on their investments wherever applicable. It should not be the other way around. To give an example, let's say, National Pension Scheme (NPS) is part of the retirement portfolio, then we can invest in the NPS and avail of the tax benefit under appropriate buckets. But in general, we do it reversely, we invest in multiple tax-saving products just to save tax every year, isn't it?. This simply leads to a chaotic portfolio and might not help fulfill any life goals.
Reach us to learn and better optimization of your tax payout.