Most of us really do not really plan our tax saving avenues in a manner we think of our other Investments. It’s more of saving the taxes rather than utilizing the same money to generate higher returns.

Ever thought you might have to pay tax on income you are yet to receive? You are, and in your favourite instrument – the good old bank fixed deposit – at that.

In bank FDs, one has to pay tax on the interest earned at the end of a financial year even if the interest would be paid at a later date, or maybe years later.