Better Tax and Investment Planning : : Things to be done by an individual before 31st March
Tax and Investment Planning is important for every taxpayer and the same needs to be done before the end of the year to which Income Pertains. In Addition to Tax Planning Assessee needs to Collect Relevant Supporting and Calculate His Tax Due and Pay the same.
Here we have listed things an individual assessee should plan and do before 31st March for better tax and investment planning :
1. Submit to your employer the proof of investments/expenses that you have incurred to claim deduction under Section 80C. Your employer would require the details and the documentary proof to provide you the deduction under Section 80C.
2. If you are claiming deduction for house rent allowance, submit rent receipt, etc, to your employer for claiming the benefit. Also submit PAN of the Landlord if the Total Rent During the year exceeds Rs. 1,00,000/-
3. Collect all your bank statements and Tax Deducted at Source (TDS) certificates (FORM 16A), if any, from your bank. This will help you to compute interest income on bank deposits and pay balance tax, if any.
4. If you have a running home loan, you must collect the certificate of repayment of principal amount and the interest paid during the financial year from the bank/financial institution from which you have taken the housing loan.
5. In case you have changed employment during the financial year and not collected your Form 16, then you should collect the same now from your previous employer.
6. If you are taking tax benefit under any of below section kindly collect the receipt of the same:-
Made donation to any charitable organization – deduction u/s 80G
Payment of health insurance premium for self and family – Deduction u/s Section 80D
Interest on educational loan – Deduction U/s. 80E
7. If you are claiming medical reimbursement from your employer then you must keep your medical bills ready for submission to your employer.
8. If you have sold/transferred any asset like house property, shares, mutual funds etc. then compute the capital gains and check the exemptions available to you. A distinction is to be made between long term and short term capital gains which attracts different tax rates.
9. Check if you are eligible for additional deduction under Section 80EE : Deduction for interest on loan for residential house property
10. Compute your tax for the year and assess whether you are required to pay any balance tax. Include Income of Minor Child if the same is to get clubbed with your Income while calculating your taxable Income.
Above are few of the important steps that one should take care of while preparing one’s tax computation.
We hope that this simple check list will help you in better your present tax and investment planning for better future.