The DO'S and DON'TS of Tax Planning
Every year individuals struggle in doing their tax planning. We suggest all individuals follow DO's and DONT's of tax planning in the starting of every financial year and implement in their Financial Planning.
DO'S
▪️Be the early bird:Planning taxes right from the beginning offers several advantages like disciplined investing and rupee cost averaging.
▪️ Think Long Term:
While choosing your tax-saving tool, analyse to decide which instrument can deliver high returns and more benefits in the long run.
▪️Look beyond 80C:
Investments can help you save tax. However, you can reduce your taxable income otherwise too. For example, you can claim a deduction for your child's tuition fees.
▪️Spread your Investments:
Use 12 months in a year for your tax planning and not just one. This will allow you to ease any last-minute burden on your finances.
▪️Keep your Tax-related documents in order:
Investments are good for saving tax. However, for claiming deductions, you need investments proof.
DON'TS
▪️Follow the herd:There is no one-size-fits-all for tax planning. Formulate your plan after considering your financial state, goals, risk appetite and so on.
▪️Think that Tax planning is difficult:
Beware of this myth. Tax planning is simple. All you need is a careful analysis of your financial situation and enough time to devise a suitable plan.
▪️Ignore your Goals:
Keep your financial goals in mind while Tax planning. For, you may need much more than just saved Taxes.
For more details, kindly contact us on +91-7021741077 or email us on investments.mota@gmail.com.
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