Four. Buying insurance for the cause of tax planning: For a few years dealers have inveigled their customers into buying coverage plans to shop tax underneath Section 80C of the Income Tax Act. Investors must comprehend that insurance is probably the worst tax saving funding. Return from insurance plans is in the variety of 5 – 6%, while Public Provident Fund, every other 80C funding, offers close to nine% threat unfastened and tax unfastened returns. Equity Linked Saving Schemes, some other 80C investment, gives much higher tax free returns over the long time. Further, returns from coverage plans may not be totally tax loose. If the premiums exceed 20% of sum confident, then to that extent the adulthood proceeds are taxable. As mentioned earlier, the most crucial aspect to notice…