Stick to your repayment schedule to avoid earning a bad credit report
Repaying Education Loans
Interest paid on education loans qualifies for a tax break under Section 80E of IT Act
Contribution to the employees' provident fund (EPF) qualifies for a deduction under Section 80C up to an overall limit of Rs 1.5 lakh per financial year.
Maximizing Tax Benefits
If you live in a rented accommodation, you can claim tax benefits on house rent allowance (HRA) within the specified limits
Maximizing Tax Benefits
Clearly defining your financial goals is crucial for effective financial planning, to pursue higher education, pay off loans, build wealth, or plan for the long term
Defining Financial Goals
Consider investing in products with no credit risk like National Savings Certificate (NSC) and tax-saving bank fixed deposits offered by nationalized banks
Options for Lower Income Tax Slabs
ELSS not only provide a tax break but also offer the potential for higher returns. These investments have a lock-in period of 3 years
Equity-Linked Saving Schemes (ELSS)
Contribute to the Public Provident Fund (PPF) without market risk. PPF offers stable returns and helps in building a corpus for the future
Public Provident Fund (PPF)
Term life insurance and Health insurance are crucial if you have outstanding loans or dependents.
Importance of Insurance
Set aside funds to cover at least six months of expenses in fixed deposits or liquid funds