Before The Taxman Strikes

Focus on your financial goals, and tax benefits will follow.

- Gaurav Mashruwala

THE YEAR 1973–74 will go down as one of the darkest years in the history of personal income tax in India. That year, the highest rate of personal income tax was 97.75 per cent. At the time it was perfectly normal for taxpayers to focus only on tax-saving instruments.

Today we are in a comparatively lower tax regime, with the rate of taxation ranging from 5 per cent to a maximum of 30 per cent plus levies. Also, there are a number of tax benefits within the Indian Income Tax Act that covers our basic needs.

However, many people, especially young earners—new to the world of financial responsibility—remain unaware and unsure about the multitude of options that exist today to help them save on taxes.