Understanding Changing Dynamics of Taxation

There surely is nothing certain in life except death and taxes.  And when it comes to the latter, things are made difficult by the fact that tax laws are often complex. However, understanding the nuances of taxes and how they impact finances are an important part of financial planning. There are broadly two parts to understanding taxation. One is how taxes affect different investments, whether it is buying a house or investing in mutual funds. The other is how to make use of deductions available to reduce one’s tax outgo. Section 80C, with a wide variety of tax saving options, is the most important. Proper planning is needed so that one does not end up making last-minute investments to save tax. Here, we look to answer some common tax queries our readers ask. 1. What is advance tax and do I need it? Advance tax is a mechanism to ensure a steady flow of tax revenue to...