Hello Hive Fam!
I hope that your day is going well and that you're having a good time over the weekend.
This is India, where most of the organisations require investment document submission. Basically, it is a time when employees are requested to submit their supporting documents to avail the tax rebates, and for that, a declaration is made in April. So it works like at the beginning of the financial year, we get the option to declare what we are going to invest or pay towards different tax saving elements, and in the month of January, we need to submit the documents.
The benefit of following this practice is that post declaration, the organisation does not start deducting the tax from April month So they consider the declaration a declared investment, and whatever documents are submitted in January in some of the organisations, this can also be in February. They consider the actual investment on the basis of document submission, and whatever is the remaining tax amount is deducted from February and March's salary. This is a general practice that has been followed by a lot of employers. So, in my company also it is also the same, and all my friends also share the same about their company.
I have got the email from the organisation that I need to submit the documentation by the end of this month, so it is time for me to gather all the documents related to the investment and other instruments that I have done since the beginning till now, or by the end of March. So some of the components that are considered for the tax exemptions are like insurance, long-term tax rebate, FD, and house rent allowance, etc. I have a couple of insurance policies, which are life insurance, health insurance, etc The term insurance is one I have not purchased.
I discussed with my colleagues this week, and I got to know that most of them do not have term insurance, and it is because one of the reasons is that they do not get the money back after the planned maturity. But I think the purpose is different from the term plan. Although I have also not taken it, so it is something that I should have done before, but I just did not buy but having health insurance I find more important, so I took the health plan for my family and me in 2016. Although I have had a Corporate plan since the beginning of my career, I don't rely on that because you never know if something changes with the job and that plan is not available anymore, then at least I can manage my health expenses.
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For the term plan insurance, I have not yet decided whether I should buy it or not. Sometimes I think that it is a necessity because it helps ensure they are prepared for any situation when they need financial support, and the premium is also not too much, but it's just that I never thought so seriously, so I did not buy it. now I think that I should buy it soon so maybe within this financial year I can buy it or maybe later also which depends because generally in the last quarter of the financial year there are so much expenses in terms of investment So it can be one of the challenge for me but let's see how it works because I am considering to buy it this year.
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