I was wondering as to how to save tax and invest in Stock market. There are numerous options to save tax and was wondering why does government ever give tax breaks when they need money to run the nation effectively and efficiently. So there should be something fishy. I always believe that “There is nothing called FREE FOOD”.
So have you ever noticed or thought about in which government gives a tax break? Only for long term investments, home loans, mutual funds, Life Insurance and so on.. Why does Government gives tax break for such kind of things? I would prefer government giving me tax break on buying Stocks, personal loans, vehicle loans and so on.. but government does not even consider it. Why?? I think the government does not earn or get any money from us in any ways. If that is the case they don’t give the tax break. As simple as that.
Anyways, let us not ponder too much about that. How much ever think about it we can’t formalize a new tax rule. All that we can do is either pay tax or not pay tax. But being a responsible citizen I feel we should pay tax.
I feel Public Provident Fund (PPF) is a very good option for tax benefit. Everyone should have PPF because it is a good option with very less risk. Why I claim that very less risk is because you never know what might happen to the government and what might happen to the money you have provided them to take care of. But it is much safer in the government’s hands.
You can invest in other financial instruments also but I am not sure how much it is safe and what is sum assured. I will get into depth of these topics in the further topics.
See you around!!