Tax Planning leading to Financial Security

Ayaan

32-year-old professional earning ₹25+ lakh per year

Concerns: Tax Saving

Ayaan had some investments in LIC and PPF but wasn’t sure if he was fully maximizing his tax-saving opportunities.

As we began discussing tax-saving strategies, we suggested Ayaan to consider health insurance coverage for his family. Initially, Ayaan thought his employer’s medical policy covered his mother. However, after some probing and detailed conversation, we discovered that his company’s insurance only covered employees, not their dependents—meaning his mother had no medical insurance.

Without this coverage, a medical emergency could significantly burden Ayaan and his brothers, risking their savings.

TrueX Advice

1. Health Insurance for Ayaan’s Mother

We explained the financial risks of not having medical insurance and immediately helped Ayaan secure a comprehensive health policy for his mother. Our focus included:

• Hospital Coverage: Since his mother lived in a remote town and frequently visited his sister, we ensured the policy covered hospitals in both locations.

• PED Add on : Diabetes was a pre existing disease which Ayaan's mother had. After comparing various plans, we selected one offering pre existing disease coverage from day 1 ensuring no claims are rejected.

• Tax Benefits: Upto 50k of health insurance premium was eligible for tax deduction in old regime.

2. Fixing Gaps in Ayaan’s Tax Planning

Once his mother’s insurance was covered, we focused on improving his tax planning.

Key changes included:

• Maximizing Section 80C: Ayaan wasn’t utilizing his home loan principal repayment under the ₹1.5 lakh deduction limit. By factoring this in, he reduced his taxable income.

• Correcting Interest Deductions: We identified a miscalculation in his home loan interest, which had caused a higher tax liability. After correction, Ayaan could claim the full deduction under Section 24(b).

• Additional Deductions: We uncovered other eligible deductions Ayaan had missed, including NPS contributions (80CCD), which further reduced his taxable income.

The Impact

Through a deep dive into Ayaan’s financial portfolio, we:

• Secured comprehensive health insurance coverage for Ayaan’s mother ensuring financial security against rising medical expenses.

• Reduced tax payments by maximizing deductions

• Started building Retirement Corpus through annual NPS investments

Ayaan came to us seeking tax planning advice, but by taking a holistic approach, not only his taxes got optimised but also his family’s financial future became secured.

Are you looking to optimize your tax benefits, secure health insurance for your loved ones, and create a long-term financial roadmap?

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