The moment you earn your first income, the long search for the best tax-saving instruments begins. We try various methods, like scouring the internet for efficient tax planning strategies or hand-me-down information shared by parents, relatives or friends. Though, none of this would suffice without the help of a chartered accountant!
The tips and tricks shared by family and friends aren’t tailor-made to your financial condition, but a CA could fill in the gaps. Better yet, they could also create a holistic strategy for you, potentially saving thousands or even lakhs in taxes!
India celebrates Chartered Accountant’s Day on July 1st of every year. It commemorates the work of the Institute of Chartered Accountants of India (ICAI) by Parliament in 1949. This year, they will be celebrating the 74th Chartered Accountants day.
In 1949, a committee of experts suggested that a separate autonomous association of accountants is required to regulate the work of accountants in India. The Indian government in agreement with this recommendation passed the act in Parliament and created the Institute of Chartered Accountants of India (ICAI).
Being the sole licensing and regulatory body for the financial audit and accounting profession in India, its guidelines are followed by everyone. It includes the National Financial Reporting Authority (NFRA), companies and accounting organisations.
Here are a few interesting facts about the ICAI,
● Created by an act of Parliament in 1949, it’s the oldest professional body in India
● After the American Institute of Certified Public Accountants (CPA), the ICAI is the second-largest account body in the world
● Within the ICAI there are no reservations, even for office bearers
● Given to the ICAI by Sri Aurobindo, their official emblem contains a Garuda and a quote from the Upanishads
● The ICAI’s first certificate was issued to its first president, CA Gopaldas Padamsey Kapadia
Through their years of experience and in-depth knowledge, CAs can provide their clients with the best tax-saving advice. Just a few sessions with a skilled CA can significantly improve your finances! They can help you figure out the best investment strategies and, at the same time, aid you in saving additional funds via tax deductions.
Use the following tax planning tips and strategies from leading CAs to upgrade your current tax practices.
Founder of the Chartered Club, Karan Batra held the 22nd rank during the All India CA Exams. He is regularly featured in print media and appears on television as a leading tax expert.
According to Batra, one of the best ways to save on taxes is to avail of government-provided deductions through investment instruments. The eligible investment schemes are under Section 80CCC and Section 80CCD of the Income Tax Act, 1961.
The below-mentioned instruments are popular amongst investors for tax-saving purposes:
● Public Provident Fund (PPF)
● Tax-Saver Fixed Deposits
● Equity Oriented Mutual Fund
● Employee Provident Fund (EPF)
● National Savings Certificate (NSC)
Holding degrees like Bcom, PGDM and MBS, Rachana Ranade’s aim is to promote the importance of financial literacy in India. Through her media platforms, she provides viewers with better access to information on stock markets in the most simplified way.
Much like Batra, she believes that investment schemes are crucial to saving on taxes. With investment schemes like ELSS mutual funds and Sukanya Samriddhi Yojana, you receive deductions up to ₹1.5 lakhs. These tax deductions are available under Section 80C of the IT Act.
After clearing all levels of the CA course in the first attempt, Sahil Jain secured an All India rank of 42. He has a thriving tax consultancy business and teaches topics based on taxation to students and professionals alike.
Jain has emphasised the reasoning behind Section 10(10D) of the IT Act, which aids taxpayers. By purchasing a life insurance policy, an assessee can receive tax exemptions on the maturity under this section.
Chartered Accountant’s day is a great way to celebrate and acknowledge the hard work of these professionals. Furthermore, it highlights their importance to the country’s economy. Whether small or large, businesses and individuals will always require an expert’s guidance – which a CA will gladly provide.
So, the next time you face troubles with tax planning, reach out to the best CAs in your city! Visit Bajaj MARKETS and explore lucrative investment instruments with high returns and tax benefits.