Tax planning is not a device to reduce tax burden. In fact, it helps savings by investments in government securities. Savings reduce extravagance, and correspondingly inflation. Tax savings are permitted only for investment made in government securities and bonds of priority sectors which ultimately help the nation. Therefore, the savings in tax help the Central and state governments to mobilizes funds by way of investments and as such the government earns much by way of other benefits, by sacrificing small amount of tax. The Supreme Court in one case observed that Tax planning may be legitimate provided it is within the framework of Law. By tax planning, the government is equally benefited.

Savings and investments are interconnected. Before making investments the person has to consider various factors such as:-

Liquidity-when he requires the amount to meet the educational expenses of children,for marriage, house construction or for a secure future after retirement.A good health insurance plan is one of the most important things you need to have for yourself and for your family. But what should a good health insurance plan consist of?

It can be a bit of a challenge today to find the right insurance plan for yourself and your family because of the diverse options available. However, when you are choosing a good health insurance plan, dont simply base your decision on the cost of the monthly premium.

Know the details of the health insurance plan - what it covers and what it doesnt cover. Also find out the health insurance plans in-network as opposed to out-of-network coverage and expenses. What are its co-payment amounts, deductible amount per family member if applicable, and the coverage caps?

Understand what your needs and your familys needs are when you are deciding on what health insurance to get. Should the health insurance plan cover just you or should it cover you and your spouse? Should it cover you and one child or do you need a health insurance plan that will cover your entire family?

The next step is to find out the health needs of everyone whom you want to include in your health insurance plan. This step can be quite complicated. Are you and the others in good health overall? Does anyone have any pre-existing conditions? Would you at any time feel the need to approach certain medical specialists or institutions? Once you answer these questions, you will be ready to start choosing a good health insurance plan.

You will need to gather all possible health insurance options available for you and your needs. If your employer is offering group insurance, your options may be limited. If you are self-employed, you will have to choose from the different private health insurance plans. Whatever your case is, you need to understand the difference between the two basic types of health insurance plans offered today: the Indemnity Plan and the Managed Care Plan.

With an Indemnity Plan, you are free to choose when and where you want to get medical assistance. This type of health insurance plan has a higher out-of-pocket cost, but for many people, the added price is fair when they consider the freedom they are getting.

With a Managed Care Plan, you are required to only use the services of medical professionals and institutions that are part of the plans "network". In general, you would need pre-approval for medical services beyond basic preventive care. In terms of costs, the costs of Managed Care Plan are lower.

A Managed Care Plan is a good choice if you (or your dependents) dont have major health problems, are not concerned about who provides you medical services, or have to keep tabs on your medical costs.

Of course, this was just a very basic overview of the two types of health insurance plans. You can research these two plans and study them more deeply.

After deciding if you want a Managed Care Plan or Indemnity Plan, the next step you need to take is choosing the right health insurance company to provide you the health coverage you need. There are many health insurance companies today - from the famous corporate giants to the small, single-owned business.

You need to thoroughly research these companies before you make a decision. You can use the Internet to research companies, ask others for recommendations, and read literature so you can understand each insurance companys claims filing procedures. Armed with the necessary information, youll be able to choose the right health insurance company for you and your family.
Security of the investment.
The return and tax on income on such investments.

This varies from person to person. A person by investing in NSC saves on his tax. However, the interest on the investment is taxable. Again, if the investment is made in PPF, he is not liable to pay the income tax on interest. But the period of NSC is six years whereas in the case of PPF the period of repayment is 5 years. However, a portion can be claimed after 7years. Thus the person who makes the investment has to consider whether he requires the amount after 5 years or he can wait for a longer period.

To make investments there should be savings. A lower income person also wants to save, but his gross income and day-to-day expenses dont leave him anything to save. For example, if he has to save Rs 20 from tax by investmenting in NSC, he has to invest Rs 100. Sometimes considering his financial needs he will be prepared to pay the tax of Rs 20, so that Rs 80 is there for his other needs. Therefore, the capacity of savings is also very relevant. To increase savings one should make investments that give reasonable returns. Again this return becomes a saving if invested. This booklet talks about the deductions available under various head such as salary and house property and also various modes of investments and tax deduction available from the said investments. The rebates, concessions and-liability of tax in this article are with reference to the assessment year 2001-2002 (financial year April 1, 2000 to March 31 2001). The amendments made by the Budget 2001 are also touched upon in brief.

Tax planning should be an important component of your overall financial plan. Careful planning is the key to successfully and legally reducing your tax liability. There are proven strategies for reducing taxes for individuals and families. We proactively recommend them to maximize your after-tax income. We make it a priority to be up-to-date on changes in the tax laws, complexity of the tax code, and new tax regulations. We continually look for ways to minimize your tax liability taking into account all deductions allowed while using modern tax preparation software.

We help you to:-

• Reduce taxes on your income so you keep more of what you make;
• Reduce taxes on your estate and assets so your family keeps more of what you have made;
• Reduce taxes on your investments so you can grow your wealth faster;
• Reduce taxes on your retirement income distributions so you can retire in comfort; and
• Take advantage of certain investments that are tax exempt and/or tax deferred.