Summary: When it comes to tax-saving strategies, many individuals, particularly in marketing, often make hasty decisions in March. A more deliberate approach focuses on avoiding illiquid investments and prioritizing actual financial protection. This involves refraining from investing in NPS due to its long lock-in period, forced annuity purchases, and taxable maturity amount, preferring flexible mutual funds instead. Similarly, insurance is viewed purely as protection, with a preference for term policies over ULIPs or endowment plans, which are not considered investments. For 80C deductions, the preference is for ELSS mutual funds due to their shorter 3-year lock-in and equity exposure, rather than PPF, FDs, or NSCs. A key strategy is to SIP monthly into ELSS to avoid last-minute panic and emotional investment decisions. Health insurance is primarily for protection against significant medical expenses, with the 80D deduction being a secondary benefit. Finally, for freelancers, Section 44ADA is a valuable tool for claiming legitimate business deductions, and HRA can be strategically used by salaried individuals living with parents, provided the parents declare the rental income. The overarching principle is that saving tax isn’t always beneficial if it compromises liquidity and control over one’s finances.
Introduction: Most people especially in marketing start panicking around March and throw money into whatever their HR or LIC uncle tells them will “save tax.” Let me walk you through what I really do—and what I intentionally avoid.
1. I Don’t Invest in NPS
Yes, it gives an additional ₹50,000 deduction under Section 80CCD(1B).
But let’s be honest—it’s one of the worst “investments” you can make if you value liquidity and control.
– Locked till 60
– Forced to buy an annuity with poor returns
– 40% of your maturity amount becomes taxable
– No flexibility in case of life changes
In most cases, I’d rather just pay tax and invest the balance in a mutual fund. Over 15–20 years, I come out far ahead, with complete liquidity and control.
2. I Don’t Buy Insurance to Save Tax
I only have one pure term policy (₹1 Cr cover for ₹10–12k premium). That’s it.
No ULIPs, no endowment traps, no LIC emotional pitches.
Insurance is not an investment. It’s protection.
3. I Use ELSS Wisely
I do invest under 80C—but only in ELSS mutual funds because:
-3-year lock-in (lowest among all 80C options)
-Equity exposure
-SIP-friendly
My picks: Mirae Tax Saver, Quant ELSS (aggressive).
No PPF, no FD, no NSC. Just smart, long-term equity-based saving.
4. I Don’t Panic in March
Most bad tax decisions are made in March.
I SIP every month into ELSS and other funds. This avoids:
-Cash flow issues
-Emotional investing
-Last-minute mistakes
5. I Have Health Insurance, But Not Just for 80D
The 80D deduction (₹25k for me + ₹50k for parents) is great—but my primary reason for buying health insurance is real protection.
A single hospitalisation can wipe out years of savings. That’s not fear—it’s reality. Especially for self-funded people like us.
6. I Don’t Currently Use Section 44ADA (But You Should If You’re Freelancing)
I’m not doing freelance consulting right now, so I don’t use 44ADA.
But if you’re in marketing and doing even one project on the side—strategy, content, influencer work, freelance marketing—you should consider filing under 44ADA (presumptive tax).
It allows you to deduct:
-Phone, laptop
-Rent, internet
-Subscriptions like Canva Pro, Zoom,
-Travel for shoots/meetings
All legally.
7. Use HRA Strategically
If you’re salaried and living with parents, you can still claim HRA:
-Make a rent agreement, transfer rent monthly, make sure they show it as income. (works only if your parents are in lower tax bracket than you).
Final Word-
Not every rupee saved in tax is worth it if it traps your money for decades.
Sometimes, it’s better to pay tax, invest smart, and retain freedom.
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