Why we early Tax Planning Now is always advised by the experts?
Greetings for the day from USP FinPro !!!
I hope you and your family are safe and in the best of health.
Today, I would like to emphasize on the age old dilemma of why we should start Tax Planning Now and not typically in the month of December?
Over the years, Its been observed that most individuals start their tax planning around December. Reason being simple cause, for salaried individuals, that’s typically the time when their Employer asks them to submit actual investment proofs. However, there are two significant flaws in this as per the Finance experts. One, taxpayers hurry to invest in any available tax saving options and could end up making unfavorable choices. Two, individuals may feel the cash crunch in the last few months.
Among the many tax saving options, section 80C # is the most sought after and under this section, investments made up to ₹1.5 lakh in a financial year are eligible for tax exemption. There are many open-ended equity-linked saving scheme that helps you save tax under Section 80C and aims to generate long term capital appreciation, could be a real smart choice, especially if planned from the beginning of the financial year. If your investors plan to invest the entire ₹1.5 lakh to claim deduction under Section 80C and save around ₹64,116*, they have to invest about ₹18,750 from August. If they start from April, then the same can be just ₹12,500 per month, But if they do it in the last three months, they will be investing ₹50,000 per month.
Start early to invest small amounts every month while enjoying Rupee Cost Averaging (Since they will be investing throughout the year). The most significant benefit is starting early means better analysis of their investment goals and asset allocation.
Reach us today to find the most appropriate option for your Tax saving needs. Get customized solutions and reap the best benefits from the options available. It’s an earnest request you spend so much time earning the money. The least you can do for yourself a favor is make the money work best for you………It’s never late though. Happy investing
Source: Internet
