How to Save Tax using credit Cards?
Contributor October 18th, 2007
Investment and Tax Savings can go hand in hand, you just need to do some smart work.
One plan can be like this :
almost all banks are providing the facility to pay your insurance premium via credit card and then they also provide the facility to pay that amount at zero percent interest in six or more months. You can use this facility to save your tax as well as to earn on the money you don’t have with yourself.
Just purchase a policy, say unit linked plans, I am assuming that you are going to take a 50,000/- policy, now if you as soon as you purchase it you save your 20%-30% of this amount as amount will be deducted from your income while calculating total taxable income.
above all, you will start earning on this money from day 1 as money is in stock market or any other profitable scheme. So you will save the tax on the money you don’t have and you will also earn on it.
I have done that, got good resutls.Sharekhan.com website has some very useful article on investment and savings