7 Things to do before 31 March to Save Tax and cover Life’s on | The Smart Bid.. Start Earning more..

7 Things to do before 31 March to Save Tax and cover Life’s on-going Risk

1) 80C: Claim full tax deduction in

80C 1.5 Lakhs
80D Mediclaim 50K
80CCC NPS 50k

If you do not have funds then withdraw from existing investments & reinvest in tax-saving instruments !

Or take loan to claim tax deduction – Remember you save upfront 30% of investment !

2) Book Profits in Shares and MF up to Rs 1 lakh
Capital gains in Shares and MF is exempt up to Rs 1 lakh. So you can book profits and re buy without paying tax

Also book losses now to adjust against gains from other investments to save Tax

3) Rent: If paying rent to parents or friends Make Rent Agreement
This is applicable for Next year starting from 1 April 2022 to claim HRA benefits

4) Life Insurance: Review your life Insurance based on income

Your Insurance should be 10 time of your annual Income

Buy before your birthday to save on premium

5) Medical Insurance: Review your Medical Insurance requirement for your- self and family each member should have minimum Rs 5 lakh – Max 50 lakh or Family floater of Rs 20 lakh.

6) Increase your SIP in Equity by 10% or more based on your increase in Income compared to last year
Do this exercise every year.

You will be surprise to see your corpus at the end of 30 years

7) Gift your savings to your major child. The Tax implication will be zero for income upto Rs 5 Lakh from next year. And you will save 30%.

8) Form a HUF – There are many ways and means for effective tax planning by creating a HUF.

Above are few tax planning/financial Planning tips. Take decisions by consulting with your CAs.