Mumbai, Maharashtra -- (SBWIRE) -- 03/16/2010 -- Tax planning is an annual exercise. Yet, we spend sleepless nights over it as we are ignorant of effective tax planning techniques. Most of us do it in the end of financial year. Result: We end up making investments we later regret. Given below are tips for smarter tax planning:

1) Start Early: It is best to start planning at the beginning of the year. But if you are late, resort to quick-fix tips as illustrated below.

2) Know your tax liability: Based on the tax slabs issued by the government as per tax norms for the financial year 2010, know your tax liability. http://buyigain.com/igain/igain/index.jsp

3) Use existing investments to avail of deductions: Existing investments, such as contribution to the Employees' Provident Fund, repayment of housing loan and premiums for life insurance and health insurance can be used for deductions under various sections.Here is how you can save a tax emergency: http://www.bajajallianzlife.co.in/microsite/index.asp

4) Infra bonds: With the announcement of new tax slabs this year, infrastructure bonds are good propositions to invest in. Apart from this, there are investment options like ULIPs and saving schemes provided by investment and insurance players in the market.

5) Insurance: Any average Indian would know insurance is necessary and saves tax. If insurance is used as a tool to invest, it can give you guaranteed and better returns on your investment. Insurance, for this financial year, will prove as a brilliant investment option for women and working professionals as they have custom made offerings from general insurance players in the market. http://buyigain.com/igain/igain/insurance_basics.jsp

6) Get a Mediclaim: This is an area which remains unutilised while tax planning and investment. Section 80D allows you to invest in a health insurance plan to avail a deduction up to Rs. 15,000. Your tax exemption can be capped upto 20,000 for parents who are senior citizens.

With the government exempting service tax on all other charges, except the fund management fee (FMC), on unit-linked insurance plans (Ulips), the cost of this product is likely to come down. "The service tax on Ulips has been brought to the same level as the mutual fund industry. This will reduce the cost of Ulips further," says Kamesh Goyal Country Manager Allianz and MD and CEO Bajaj Allianz Life Insurance.

Some products from the Bajaj Allianz portfolio that can help save tax are:

iGain: Bajaj Allianz iGain II is the first unit linked insurance plan - ULIP which can only be bought online. Which means you don't just get insured, your investment also takes part in market instruments, giving you greater returns as well (http://buyigain.com/igain/igain/about_igain.jsp)

Shield Plus: A single premium fixed-term unit linked plan that gives you choice of investment options to achieve your desired objective at maturity. So planning for a target amount is made easy now. http://www.bajajallianzlife.co.in/product-detail.asp?prodid=135)

Max Gain: Offers you the guarantee to encash your units at maturity at the highest unit price achieved by the fund over the 10 years term of your policy. You have the flexibility to pay your premiums up to 7 years. (http://www.bajajallianzlife.co.in/product-detail.asp?prodid=158)

Guarantee Express, is an interactive mission that took place across 137 cities across India. Seven floaters that went across these cities educated people through street plays and interactive programs about insurance as an investment bearing fruitful results.

About Bajaj Allianz
Bajaj Allianz is one of the leading Private Sector life & general insurance companies in India. Bajaj Allianz is a union between Allianz SE, the world’s leading insurer and Bajaj Finserv Limited (recently demerged from Bajaj Auto Limited, one of India’s most respected names). Allianz SE is a leading insurance conglomerate globally and one of the largest asset managers in the world, managing assets worth over a Trillion Euros (over Rs. 55, 00,000 crores). At Bajaj Allianz, customer delight is our guiding principle. Bajaj Allianz began its operations in 2001 and today has a pan-India presence with over with offices and presence in over 1100+ towns in the country.

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