Tax Planning Strategies for Life Insurance
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DEEPAKTax Planning Strategies for Life Insurance
Uploaded by
DEEPAKA
SYNOPSIS
ON
A STUDY ON WHETHER TAXTION IS A SEELING
COOL FOR LIFE INSURANCE
In the partial fulfillment of the requirement for
The award of the degree of
Master of Business Administration
2015-2017
SUBMITTED TO : SUBMITTED BY
Mrs. Anshu Bhatia Naveen Kumar
MBA 4th Sem.
Roll No. 1508570074
S.D. COLLEGE OF MANAGEMENT STUDIES,
MUZAFFARNAGAR
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OBJECTIVE OF THE STUDY
The research objective was setup in accordance with the present need of the asset
management company which was to compare its fund in order to identify the competitive
advantage over the same category funds.
The secondary objective of the research was to know best scheme of tax-planning funds
offered by various mutual fund house.
The third objective of the research was to evaluate the all tax-planning scheme offered by
various mutual fund house on the basis of risk adjusted return and their portfolio.
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RESEARCH METHODOLOGY:
Research is the systematic approach towards purposeful investigation. This needs formulating a
hypothesis, collection of data on relevant variables, analyzing and interpreting the results and
reaching conclusions either in the form of a solution or certain generalizations.
Thus, research methodology is a scitific and systematic way to solve the problems./. a researcher
has to design his methodology, i.e, in addition to the knowledge of methods/techniques, he has
to apply the methodology as well. The methodology may differ from problem to problem. In a
way, research methodology deals with the research methods and takes into consideration the
logic behind the methods, we use.
Marketing Research (MR) Process
Marketing Research may take many forms but systematic enquiry is features common to all such
forms. Being a systematic enquiry, it requires a careful planning for the orderly investigation
process. Though it is an over simplification to assume that all research process would necessarily
follow a given sequence. Marketing Research often follows a generalized pattern which can be
broken down and studied sequentially.
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INTRODUCTION
What is Tax Planning?
Tax planning is an essential part of your financial planning. Efficient tax planning enables you
to reduce your tax liability to the minimum. This is done by legitimately taking advantage of
all tax exemptions, deductions rebates and allowances while ensuring that your investments
are in line with your long term goals.
What tax planning is not?
Tax Planning is NOT tax evasion. It involves sensible planning of your income sources and
investments. It is not tax evasion which is illegal under Indian laws.
Tax Planning is NOT just putting your money blindly into any 80C investments.
Tax Planning is NOT difficult. Tax Planning is easy. It can be practiced by everyone and with a
very little time commitment as long as one is organized with their finances.
Smart ways to save income tax in India
The time will soon come for filing your income tax returns (ITR form) for 2012 in India. The
first three quarters of any year are the most dangerous ones for an investors financial planning. I
say dangerous because he falls prey to people who sell products in the name of tax planning.
This is the time when most investors end up with crap life insurance policies. This is also the
month when life insurance policies sales pitches go on a screaming overdrive to sell, sell and
sell.
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So how does one take the noise out of everything and save income tax in 2012? We list for
you some of the avenues available to you today to park your money in to save income tax.
Remember to invest in the below products much before filing your income tax returns (ITR
forms). Also keep in mind that Direct Tax Code (DTC) might or might not be implemented
but dont fret about it yet just invest!
This is one of the most unsuitable, for lack of a better word, ways to save income tax in
India. For those who are caught in the investment cum insurance quagmire, this will end up
being for the easiest option. However, this is not desirable.
It does not make sense to buy Unit Linked Insurance Plans (ULIPs), endowment plans,
money back plans and other types of life insurance policies to save income tax. These
products dont offer you more than inflation (ULIP might if you stay the course of 10- 15
years). Term plans can of course and should be bought as they are the right products for
insurance.
While the premium you pay can be used for tax deduction under Section 80C and while the
income is tax free, DTC is mum about how this will change. My advice is to avoid putting in
money in the first 3 quarters of the year in insurance policies.
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LIMITATIONS
Intodayscomplexfinancialenvironment,investorshaveuniqueneedswhicharederived
[Link],everyinvestorseeksto
maximizehisreturnsandsafetyonhisinvestmentswithoutcapitalerosion.
Andinvestmentinliquidfunds has advantages in terms of liquidity, safety and portability.
They can be redeemed within 24 hours and have no exit load.
Liquid funds, an attractive alternative for parking funds lying idle in savings bank accounts.
Reason: they offer higher post-tax returns, are liquid and provide a reasonable degree of
safety in terms of the principal invested. The study is useful for:
Investors who are in higher tax bracket and prefer short term parking of fund can
evaluate through my research the advantages and satisfaction level of other investors
investing in liquid funds.
Organization can evaluate the satisfaction level and perception of investors and can
improve the products facilities to attract more investors.
It will help the students to know the fundamental and technical aspect about liquid
funds.
It is also beneficial for the institutional investors to know the investors outlook
towardsliquidfund.
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Bibliography
Books:
Association of Mutual Funds in India (reference book).
Kothari C.R., Research Methodology
Key Information memorandum & Fact sheet of HDFC life insurance
Websites:
[Link]
[Link]
[Link]
www. [Link]
[Link]
[Link]
Magazines:
Mutual Fund insight.
Business Today
Business World
