Tax planning is a big business in India and as per a survey of 1,169 salaried individuals from the IT/ITeS segment in the age group of 22-54 years (across the cities of Bangalore, Chennai and Hyderabad):
- 70% of those surveyed did not have any medical insurance and about 18 per cent only had medical insurance cover provided by their employers
- 36% of the respondents did not have any kind of life insurance in Hyderabad.
- more than 60 per cent had not fully utilised the limit of Rs 1 lakh
- 11 per cent of the respondents in Hyderabad used only Provident Fund (PF) investments, among the various tax saving options available.
- Only 18 per cent of those surveyed featuring it in their portfolio of tax saving instruments. [source]
Lack of awareness about tax instruments and investment options is where lies a huge opportunity for players in this space.
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Few development in this space
- Online sales accounts for 18% of total financial products sales in India
- Online Tax Filing in India grows 504%
- InfoEdge invests Rs 20 crore (for 49% stake) in eTechAces, online insurance distributor