Knowledge vs guesswork

Sandeep is a marketing professional in a large automobile company based near Delhi. He's in his early 40s and his wife is a homemaker. He has two children, one of them is eight and the other 12. Up until now, Sandeep has never paid much attention to savings. Every year in January he gets a letter from his employer's finance department asking him about his tax-saving investments. At that point, he generally asks Vasant, a trusted expert in these matters, who is related to his wife. Vasant's wife is an insurance agent, so it all stays in the family. In any case, since Sandeep has an EPF deduction as well as a tax break for his kid's school fees, a lot of the section 80C tax-saving limit is already used up.

This article was originally published on June 21, 2022.