Most of us work too hard round the year but give very less priority to save the taxes or the importance of the tax planning and saving it early.
It is said, “Failing to plan is as good as planning to fail”
As when it comes to start of the year, from the perspective of taxes we know it begins on 1st April and gets completed by March 31st.
I believe till now every salaried person might have received mails from their finance department for declaring their investments by this month end. Also a caution note is been generally issued stating that it’s just a declaration and actual investment proof can be submitted later in the financial year in the month of December or January.
The first thought which comes to our mind is that we have ample time till December end to invest and then submit the actual proofs. And we just lay back on this thought.
Many people begin to look for investment avenues to help reduce their tax liability post December. You are probably too late. Past December 31, you have essentially missed almost close to an entire year of investing in tax-savings opportunities that could have been applied to your 2016-17 taxes.
Waiting till last month for submission of investment proof does not give enough opportunities and sufficient time to think through our investment decisions. Also there comes substantial cash outflow in the later part of the last months of the financial year.
But don’t be discouraged. You can get a jumpstart on planning for the taxes of current financial year from the start of year itself. So in the next few weeks, think about investing in tax-saving schemes for the next financial year, 2016-17.
“Start investing in them right from the beginning” (that is from the start of financial year itself)
Confused about exactly what, where and how to invest? Well, there are a variety of options available, here’s how this works.
To avail maximum tax benefit there are few points you need to study related to your tax situation and based on this you need to take a decision and plan accordingly.
To maximize your tax benefits, it’s a good idea to invest in a range of schemes categorized in the above sections.
In addition to the tax savings you can incur, you can also get tax benefits or exemptions on taxation at the time of maturity. Few Examples are Public Provident Fund, Sukanaya Samruddhi Yojana, Life Insurance policies.
Key points to be kept in mind:
1. Do Start early at the right time.
2. File your return on or before the due date.
3. Submit your investment proof with the employer within time to save last minute hassle and prevent excess deduction of taxes.
4. Check your Form 16 once you receive the same at the end of year and compare it with your investment declaration and the proofs you have submitted.
Starting early always helps for the five key reasons stated here
Getting a help of tax expert and consulting them for tax planning would take you in a good position and optimize your tax liabilities.