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Importance of Tax Planning after Retirement in India

Online Legal India LogoBy Online Legal India Published On 19 Mar 2021 Updated On 18 Jan 2023 Category Income Tax 1 comments

In this modern timeline of the routine inflation, the financial retirement plans have become a bit more complicated than it was ever before. It is now highly advisable to conduct tax planning for retirement before it’s too late!

With the help of tax planning, the individuals can not only live the golden phase of their life with a sufficient amount of funds available to spend but can legally save the hard-earned money too. Thus, tax planning for retirement is seen as essential for elderly citizens especially.


What is Tax Planning?

Tax planning is systematic financial planning with the help of taxation experts and consultants to effectively saving taxes while following all the legal provisions. Here, the financial records, investments, financial activities are securitized and synced in a proper manner.

Through properly managed tax planning, the senior citizens and retirees would get the tax benefits with ease. It also helps in calculating the taxes and filing them within the scheduled timeline to avoid legal complications and penalties.


Why Tax Planning is important after Retirement?

In the contemporary days of price rising, nobody can flawlessly plan for retirement life. For instance, if you are 30 years old now and planning to work till 60 years, then you have 30 more years to plan and execute the retirement plans for yourself and your family members.

But, most of the time we face difficulties on the subject of choosing investment plans, amount of investing money, purchasing stocks, saving-FD plans, and many more.

How Tax Planning can help after Retirement?

Through the holistically designed tax planning, the individuals heading towards their retirement can easily manage the financial planning for the coming days. With the help of the tax consultants, the salaried persons can invest in a few specific areas, purchase a definite property or asset, and many more.

Let us discuss the facts that why should everyone start tax planning before retirement to have a trouble-free elderly life –

  1. Plan for retirement spending needs

The foremost part of the tax planning for retirement is developing a strategy on the probable spending during retirement. In the process, the tax consultants can assist with professional inputs on the same.     

  1. Accelerate your retirement plan contribution

“The secret of Getting Ahead is Getting Started”. Thus, start investing in your retirement plans without wasting any more time. If needed, you may talk with the expert tax planners regarding your investment plans and execution.    

  1. Invest in Family Members’ name

As per the expert’s point-of-view, it is an excellent method to save taxes and set retirement plans. For instance, investing in the parents’ name, taking a joint loan with your spouse, investing for the child in PPF or mutual fund can save a lot of taxable money and help you in the post-retirement phase.   

  1. Tax-free Fixed Deposits (FD)

In the tax planning strategies for retirement, the tax consultants majorly insist on investing in tax-free Fixed Deposits (FD). It is helpful for the retirees both in getting a notable amount of interest and efficiently saving taxes.

  1. Senior Citizens Savings Scheme

The Senior Citizens Savings Scheme (SCSS) is a distinctive scheme of the Indian Govt. to facilitate the senior citizens of the country. In the scheme, the individuals can invest their funds and have better financial stability after their retirement.

  1. Life Insurance & Health Insurance Plans

Following the recommended tax consultants’ insights, both the life insurance schemes and health insurance plans are beneficial for the individuals heading towards retirement. These insurances not only help in saving taxes but provide the required assistance in emergency time too.

How Online Legal India can help you?

Being a ‘StartUp India’ certified tax consultancy venture from the Govt. of India, the recommended tax planners here provide every possible assistance in terms of tax planning for the retirement age.

Besides guiding the clients with professional financial supervision, we offer essential facilities like Income Tax Filing, Tax Planning, and every taxation-related matter to Indian citizens.

 

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jhavive

29 Mar, 2021

I need help for my retirement tax planning

Team Online Legal India™

31 Mar, 2021

Thank you for reaching out to us. Team Online Legal India™ will get back to you shortly to discuss and provide efficient guidance for tax planning.


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Anjali Malhotra

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Anjali Malhotra

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