Income Tax India – Make the most of your money by good...

Income Tax India – Make the most of your money by good financial management

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Asia Bizz: As the current financial year ends on 31st March 2011 in India, let’s briefly discuss the four important requirements that will make our financial life better. Tax Planning tops the list followed by Investment Planning, Insurance planning and lastly the task of getting our financial life in order.

Tax Planning: Hurry, before 31st March contact a tax preparer or file your returns online at www.incometaxindiaefiling.gov.in. Now, for efficient tax planning for the coming year, starting 1st Apri 2011, remember two things. Use all tax deductions to bring tax liability down and secondly, declare your HRA, home loan principal and interest contribution and tax saving investment related details to your employer at the start of the year. Keep all HRA receipts, salary slips of the past 6 months and a record of previous tax returns.

Investment Planning: Plan for short term and long term financial goals taking inflation into account. Consider equity for long term goals and debt for short term goals. To be on the safer side try equity diversified mutual funds. For debt investment, try fixed maturity plans or liquid funds.

Insurance Planning : Get your life, health and household insurance policies, eg. LIC, Mediclaim policies, etc.

Get your financial life in order by following a written monthly budget and paying all your dues on time. Though it could be a tough thing to manage if you are no in the habit, but regular budgeting will help you realize where your money is going and how to save more for your future needs. It’s never to late to start, so make the most of now.