Srinagar: Are you a tax payer and are still not clear what are the most essential moves you should consider around the year-end closing on 31st March?
Ziraat Times here summarises the 10 essential tax moves to consider for a smooth transition to the new financial year:
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Make Tax-Saving Investments: Utilize tax-saving investment options under sections like 80C (PPF, ELSS Mutual Funds etc.), 80CCD (NPS), and others to maximize deductions and lower your taxable income.
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Review and Pay Advance Tax: If your tax liability is likely to be high, consider paying advance tax throughout the year to avoid interest penalties.
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Submit Investment Proofs to Employer: Furnish documents related to your tax-saving investments to your employer to ensure they deduct the correct TDS (Tax Deducted at Source).
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Donations for Tax Benefit: Consider charitable donations to eligible organizations under Section 80G for tax deductions.
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Leave Travel Concession (LTC): If you haven’t availed LTC benefit yet, plan a trip before the year ends to claim the exemption.
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Loss Harvesting: If you have capital gains, consider selling some loss-making assets to offset the gains and reduce your tax burden.
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Form 15G/15H Submission: Submit Form 15G (if not a senior citizen) or 15H (if senior citizen) to avoid TDS on interest income from certain sources.
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Postpone Capital Asset Sale (if applicable): If you plan to sell a long-term capital asset, consider holding onto it until the new financial year to avoid short-term capital gains tax.
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Review and File Income Tax Returns: Ensure you have all the necessary documents for filing your income tax return accurately.
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Update KYC Information: Keep your KYC (Know Your Customer) information updated with your bank and investment institutions for a smooth tax filing process.
Remember, these are general points. It’s advisable to consult a tax advisor for personalized advice based on your specific income, investments, and tax situation.
