As the month of March is coming for this year, what comes to our mind first is Tax Saving or how much I will get as Salary in this month.
Most of the salaried persons like us started their tax planning when they get notified by their employer about filling up their Form-C. We fill up the Form-B or the projected investment exhausting the limit like Rs 150000/- in 80C of income tax.
After that, we forgot about our commitment. During the filling up of Form – C we ended up with short of investments. As a result, we start buying whatever our friends (Insurance agents) suggest. These investment decisions become wrong most of the time as they are more interested on selling their products and earning commission.
Many of our friends and colleagues are also facing similar situation investing in the wrong instrument. Many persons do not want to invest so many amounts because of the shortage of money at the start of financial year.
Also Read: Advance Tax Payment: A Complete Guide
They prefer giving 10% tax which gives them more comfort. So I request all to follow simple 3 steps:
- Please prepare your tax planning at the start of the financial year i.e. April month. As the budget is announced in the February and one month i.e. March is to understand the budget. After necessary analysis in March, you can go ahead one by one starting from April.
- In the September month, you review your investment property. If it is not in line with your planning, please try hard from that time to maintain the schedule.
- In January again review your portfolio and if there is any extra money available you can channelize it to some instruments other than tax saving. In March prepare the form-C correctly.
Hope all of you will follow these steps in the financial year starting in April 2018.