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

 1) 80C: Claim full tax deduction in

80C 1.5 Lakhs  ( use Term Insurance Plan, ELSS, PPF,  Sukanya Samridhi )

80D Mediclaim 50K

80CCC NPS 50k 

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

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(  a thumb rule)

Buy before your birthday to save on premium ( A minor tip)

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. 

Use the power of Super Top Up Plans

6) Step Up SIP:-

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( Richie Rich)

7) Tax saving through Gifts:-

 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 – ( Hindu Undivided Family)

There are many ways and means for effective tax planning by creating a HUF. 

👆🏻Above are few tax planning/financial Planning tips. 

These 7 pointers are some of the many ideas  on taxation planning who have opted for the old pension scheme. For the next FY   execute  investments  over tax planning from the month of April 2022 itself.

Hope you enjoyed or appreciated reading this one. Thank You, keep safe & Be Empowered... 😊

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