Financial Planning And Tax Saving Tips In The COVID-19 Era

The economy and our lifestyle haven’t been the same ever since the onset of the coronavirus. While we were all busy in our own pursuits and ambitions, an intangible virus appeared out of nowhere and rattled the world. With social distancing and lockdowns in place, a lot of businesses have crumbled and companies have faced a lot of problems. And this has directly affected the employees working there. Several retail shops closed due to the drastic reduction in the influx of customers. Small-scale businesses collapsed, too. Medium and large-scale businesses are striving to stay afloat. Even there, employees are being given pink slips, are laid off, getting pay cuts and more to tackle the financial conditions. With everyone facing a cash crunch at this moment, saving might seem a little distant. But this is where we need to be wise and act accordingly. With proper financial planning and investments such as health insurance, you could save a good amount, especially on your taxes. So, if you haven’t thought about this perspective so far, here are some effective ways you could save on your taxes and unburden off your financial crises. Charity Most of us are blessed with a job, a roof and food on our plates. If it is going bad for us, there are people who are having it worse. This is the most ideal time to wake up to the spirit of humanity and share a little portion of what we have to those who desperately need it. If public service doesn’t interest you, realize that this small act of selflessness also offers something to your advantage. By donating to charity, you can save on your taxes (under Section 80G). So, if you have donated to charities like the PM Cares Fund or anything similar, you saved on your tax. And if you haven’t, it is not too late to act even now. Your act of kindness will be the source of somebody else’s happiness somewhere you hardly imagine. Once you donate to a charity, make sure you download the payment receipt after a successful payment to claim your deduction at the time of filing your income tax. Zero-risk Investment Options Considering the current condition of the economy and its future, it is suggested that you stay away from investing in market-based investment options like mutual funds and others. You many never know how volatile it could get and there are high chances that you would end up losing more than you actually invested. So, the ideal option right now would be to invest in something that is completely risk free. We recommend opening a fixed deposit account for a minimum of five years and saving monthly in it. You could also prefer PPF (Public Provident Fund) that fetches you only benefits. These offer tax exemption benefits as well. Since most of these options come with a minimum lock-in period, invest according to your budget and requirements. There are apps, netbanking services and other simple options through which you could make your payment. Get Health Insurance This is the most uncertain of the times and to be on the safer side, it is highly recommended that you get health insurance for Coronavirus. Getting a coronavirus health insurance offers several benefits and the first being peace of mind. More than the disease, what scares us is the expenses involved in the treatment and recovery. But having health insurance prevents you from experiencing paranoia around this. Having health insurance saves you from spending money on diagnosis and treatments and helps you save on taxes, too. Having health insurance is safe in all aspects as you can utilize it regardless of your physical condition or underlying disease. And if you feel your company insurance is enough, we would like to remind you that it is better to get a standalone health insurance for you and your family. With the economy being volatile, there may be changes in company policies at any time. So, you wouldn’t want to gamble on the health of your family and you at this time. Explore some solid health insurance plans, be sure to look into dedicated COVID-19 covers such as Corona Kavach policy, include add-ons if you prefer and stay safe. Wrapping Up We are sure you would have heard this enough number of times but things will change pretty soon. With the development of vaccines across the globe showing promise, virus-free days are not far away. Until then, it is on us to take care of ourselves. So get insured, stay inside, stay away from people and stay sane.