Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: due date for vat payment :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: VAT RATES :: ACCOUNTING STANDARDS :: empanelment :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: form 3cd :: list of goods taxed at 4%
« News Headlines »
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers
 Finance ministry warns tax officials of action against GST protest
 Big changes for small units under GST
 Parliament’s winter session to begin on November 16 to expedite GST rollout
 Income-tax (27th Amendment) Rules, 2016 - 92/2016
 Announcement - Clarifications in Respect of MEF 2016-17
 Non-taxing GST apps to make filing income tax return less painful

Best time to implement your tax plan is now
September, 16th 2014

The maiden Budget of the new government brought a lot of cheer to the common man. It delivered twin benefits: Deduction limit for investments under Section 80C was increased from Rs 1 lakh to Rs 1.5 lakh, and no tax for income up to Rs 2.5 lakh for all and up to Rs 3 lakh for senior citizens. We are in the middle of a new financial year — a time when most of us ought to consider tax-saving investments.

Some of us rush at the 11th hour and start looking for such investments in the last few months of the financial year, sometimes as late as March. This, however, is merely a 'tax-saving' exercise and is not 'tax planning'.

What is tax planning? Tax planning is all about planning in advance, which involves evaluating your overall tax strategy and implementing it before the year end. This way, you can make the most of the tax-saving opportunities that can help you accumulate wealth over the long term. Tax planning is an essential part of financial planning and you should devote enough time and effort for the same. Investments in tax-saving instruments should command the same well-researched and careful approach that other investments do. After all, it is your hard-earned money. The best time to start thinking about tax planning is now when you still have more than six months left in the current fiscal. Starting early will give you ample time to have a plan in place, research the best taxsaving instruments and allocate resources between them in alignment with your financial goals.

Importance of starting early The advantages of starting early in the year include having the leeway to make better choices and right investment decisions, save tax more efficiently, capitalize on investment returns, a chance to avoid last-minute paper work and mistakes, and avoid a situation where you end up having not enough money to spare for a lump sum investment.

The best approach to tax planning is to invest throughout the year in stages so that, by the end of the year, you have taken advantage of most of the tax-saving opportunities. Also, if you invest throughout the year in a staggered manner, you could avoid any liquidity pressure at the end of the year.

Learn about Section 80C Section 80C of the Income Tax Act, 1961 provides that investors (individuals & HUFs) will be able to claim a deduction of up to Rs 1.5 lakh per annum from their taxable income if they invest in eligible investments like Public Provident Fund (PPF), National Savings Certificate (NSC) and equity-linked savings schemes (ELSS). The table Section 80C: Options Galore given here gives a snapshot of these instruments, the lock-in period for each and their tax treatment.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions