March is not called the craziest month of the year for nothing; after all those tax-saving and tax-filing processes, tax-payers finally breathe a sigh of relief as it gets over. However, soon into the new financial year, investors and taxpayers should look forward to completing a few pending tasks, which don't take too much time or effort, but help a lot in making your finances controlled.
Here are six ways in which you can plan your next financial year.
Don’t Wait For Yearend To Start
Even though the tax-planning season has just ended, this is still the best time to start tax planning, say experts. Investing in equity-linked saving schemes (ELSS) is best done when SIPs are started in April itself.
As per an ET research, investors who took the SIP route earned more than those who waited till March to invest in ELSS schemes. When your investments are spread across 12 months, you get a cushion against volatility, and it also lightens the burden at the end of the FY.
Get Your Tax Papers Ready
start collecting whatever documents and information you need for tax filing from the beginning itself, to save yourself the collective efforts at the time of filing. Foreign assets or foreign income earned during the year calls for the collection of these documents right away, as obtaining tax credit receipts, income certificates and other documents from foreign countries might take time and should not be kept for later.
Organise Investment Portfolio
Make a detailed portfolio of all your asset allocations and investments. For this you can start using a portfolio tracker via Value Research, by uploading the consolidated mutual fund statement and NPS details, which would incorporate all transactions into the portfolio.
Raise Quantum Of Investments
As the appraisals are just around the corner, your investments need to be increased in the same proportion. Out of these, some investments like Employee Provident Fund contribution would automatically increase, while for others, you can either increase the existing SIP amount or start fresh SIPs in other funds.
Ask your employers for VPFs
Small savings schemes have smaller interest rate, which could further fall. However, the interest earned on EPF might not be affected much, which is why you can go for VPF contribution instead of PPF. These are eligible for tax deduction under Sec 80C and are tax free on withdrawal.
Avoid TDS by submitting forms 15G & 15H
To avoid TDS on interest, this is the right time to file forms 15G or 15H. While form 15G can be filed by investors below 60 years of age having total income from interest less than the basic exemption of Rs 2.5 lakh and don’t have any tax liability, form 15H is for individuals above 60 who don’t have to pay any tax on total income.
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