Financial planning is all about the 5Ps and they are Proper, planning, prevents, poor, performance. Here we would be discussing why the beginning of this new Financial year 2019-20 is the best time to be planning the taxes, investments and major expenses for the upcoming year.
Here we are jotting down the Five Financial things which must be done during the beginning of a Financial year so as to get ensured that we would be in Financial gains at the end:
Budgeting & Tax Planning
A Budget is always the best thing to manage expenses and keep the best of the records. Thus the budget should be created keeping in mind the expenses which have gone up like the tuition fee, rent, health insurance premium, etc and also jot down the increment in the income which is applicable if any. It is wise to plan your taxes at the beginning of the Financial year so that correct investment could be planned which would save taxes not just at the end of the year but also from the first month itself. We need to scan the various investment schemes and extract out the one offering the highest rate of returns and are exempted from income tax. Thus, we need to start investments from April itself to get benefited from compounding and make your money do the rest.
Declare Investments
The investments which are on our plans for the new Financial year should be declared via Form 12BB which would lead to tax saving and would enable the investor to bag their earning home. It is very good to timely declare your investments and other financial items, viz, the home loan, LTC, HRA, etc, this would portray a clear picture of your income to your accounts team and would give the accounts team the right calculation to deduct TDS, which would lead to increase your in-hand salary.
Submit Form 15G & 15H
The people whose income is not taxable are supposed to submit a duly filled Form 15G and 15H at their bank’s branch at the beginning of the FY in order to get prevented from the TDS deduction by their bank on interest income more than rs, 10,000
Download Form 26AS
Form 26AS is required to be downloaded from the income tax department website. So that the tax department could tally that whether the Tax deducted at source by all the stakeholders, which includes your employer, clients, tenant, bank, etc, has been credited to your PAN(Permanent Account Number) or not.
Review
Lastly, we need to review our Financial goals and find out what are the accomplishments pertaining to the last Financial year. We need to evaluate our investment portfolio and find out whether any adjustment or modification is required in terms of selling any scrip or buying new ones or withdrawing a particular investment from one investment instrument and getting it clubbed with other for reaping a better return, or, arranging funds for buying a new home/car or any other asset.
