Take a Holistic View
Tax planning does not work in isolation; it has to be lined up with your overall financial planning, according to financial advisors. At the time of making an investment, you should be able to clearly evaluate your security, return, liquidity, tax benefit and risk, tenure of investment, and take a closer view. Swapnil Pawar, Chief Investment Officer at Karvy Private Wealth said, "We always maintain that investors make last minute tax investments into those instruments which are most visible, than what is actually required. For instance, investors end up buying an expensive recurring product like an insurance scheme thinking the premium amount will be eligible for tax deduction every year. But this investment may not be in line with the individual's goal and the financial portfolio."