April is ending .. have you made your plan?

Its one month post the  new financial year and it is the right time to start out on our financial planning.. If not already late.

 

Every year , we run around to get the tax saving schemes done in the month of feb- march.. just in time to close out the financial year... but sometimes late to get the tax benefit, and hence we need to just apply for the refund in the taxes.

 

Here are the following things you should do asap.

 

Set up your tax saving investments in your salary plan

 

The company cuts our tax at the time of giving out our salaries, For this to be tax efficient , one needs to ensure that we have the right tax declarations in the system. If not done, the companies usually don't reduce the taxes at the end of the financial year. it is best to do this asap, and in the next few days if not already done so.

 

 

Start your SIPs in your 80CC and 80CC(D)

 

While there is money that goes into the employee provident fund, for most this is not sufficient. You should decide where else would you put in your money to ensure the right tax saving benefit.

 

This could be PPF, or ELSS.

 

It is good to start doing this asap in a SIP manner, which ensures that you have averaging benefits + you have the benefit of saving earlier and hence getting the benefit of compounding for a few more months.

 

If you are investing in PPF, please remember that you need to put in the money before the 5th of the month, for that money to be counted for interest for that month ( PPF is monthly interest, unlike banks which are now daily interest regimes- these used to be earlier in the 80-2000 monthly interest also)). For Sukanya sammriddhi schemes, this is till the 10th of the month.

 

 

Fill in the form 15H

 

If you are investing and you don't need to pay taxes, please fill in the form 15H and give it to the banks. This will ensure that you don't have to pay the TDS and not get into the hassle of tax refunds.

 

 

Review your Mutual fund SIP's and Funds

 

This year, most of the mutual funds are changing what they stand for - especially after the SEBI order. By the end of April, most of this should be completed. It is time for us to review the fund, check if the new fund is what we want to continue investing in or making a change. Ensure that while making a change, you don't have to pay LTCG beyond the limit of Rs 1L.

 

Get your children their own PAN

 

Even a new born can get a PAN. So if you haven't yet applied for the PAN for your children, please do so now. Its simple enough to do this online.. and the Card is delivered to your home in two weeks time.

 

The above are a few of the ideas on the things to get done asap this month..

 

life can become simple by following these few things...

 

its simplefinancialsense